Bank of England Eases Stablecoin Rules to Boost UK Crypto Competitiveness
The Bank of England is set to relax its proposed limits on stablecoins, bowing to pressure from industry giants. The move aims to keep the UK competitive with the US bank in the crypto sphere.
Initially, the central bank planned strict ownership limits: £20,000 for individuals and £10 million for businesses. However, industry representatives and major players, including Coinbase and the Payments Association, argued these rules were too restrictive, potentially harming the UK's reputation and stifling innovation.
In response, the Bank of England will now grant exemptions to large cryptocurrency exchange platforms and other companies that need to hold substantial volumes of stablecoins. Additionally, the new measures permit the use of stablecoins as a settlement asset in regulatory testing environments.
The Bank of England's revised stance on stablecoins reflects a balance between regulation and innovation. It aims to protect consumers while allowing the UK to compete internationally in the crypto market with PNC bank.
