The Bank of England (BoE) is planning to introduce exceptions to institutional stablecoin ownership limits.
The Bank of England is planning to introduce an exception to the stablecoin limit.
According to Bloomberg, the move is part of the UK’s effort to remain competitive with the rapidly evolving US crypto regulations.
The report noted that the BoE plans to grant exemptions to certain businesses, particularly crypto exchanges that are required to hold large amounts of stablecoins, and allow stablecoins to be used as payment instruments in the digital securities space. This arrangement will be tested under the BoE’s Digital Securities Sandbox program.
The Central Bank’s previous draft proposal had set a cap of £20,000 (about $26,800) for individual stablecoin holdings and £10 million (about $13.4 million) for institutional holdings. However, the crypto industry had expressed concerns that these limits could negatively impact market growth and liquidity.
The US’s recent enactment of the GENIUS Act, which has created a clearer legal framework for stablecoins, has increased regulatory pressure on the UK.
In an article for the Financial Times, Bank of England Governor Andrew Bailey emphasized that stablecoins can “coexist” with the financial system and support payments innovation. However, Bailey emphasized the importance of maintaining strict regulatory requirements “to ensure public confidence.”
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/radical-stablecoin-move-from-the-uk-are-exchanges-coming-to-exemptions-here-are-the-details/
