The UK’s central banking authority is reconsidering its earlier proposal to place strict caps on the amount of stablecoins that businesses are allowed to possess.
According to a recent report from Bloomberg, published on October 7th, regulators are now considering allowing exemptions for some businesses if stablecoins are central to their operations.
This potential policy shift follows feedback from the cryptocurrency sector and growing pressure due to international developments.
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Specifically, the United States’ progress in establishing clearer regulatory frameworks, such as with the GENIUS Act, might be prompting UK authorities to adopt a more adaptable and competitive stance.
The Bank of England’s initial proposals included strict limits on stablecoin ownership, capping individual holdings at £20,000 and corporate holdings at £10 million. The purpose was to decrease possible disruptions to the financial system, particularly those stemming from stablecoins like
The proposed limits were also designed to safeguard consumers and protect the central bank’s ability to control economic policy.
While such limitations could be acceptable for most traditional companies, they might pose challenges for organizations that are heavily involved in the digital asset sector.
Businesses deeply involved in crypto often require substantial stablecoin reserves to facilitate trading operations and ensure liquidity. The Bank is now signaling a willingness to consider exemptions in cases where this is deemed necessary.
In related news, nine European banks are collaborating on a new digital currency linked to the Euro. Discover their goals: Read the full story.