Key Highlights
- BoE plans to limit stablecoin ownership for individuals and businesses.
- Experts warn rules could slow UK digital finance innovation.
- Crypto industry criticizes restrictions as impractical and costly.
Bank of England Proposes Stablecoin Limits and Faces Criticism
The Bank of England (BoE) has announced plans to impose strict limits on stablecoin ownership, prompting backlash from the crypto community. Proposed limits range from £10,000 to £20,000 for individuals and up to £10 million for businesses, according to the Financial Times.
The BoE explained that the measures aim to reduce risks to the banking system in the event of “massive and rapid outflows of deposits.” Information about proposed limits first appeared in April 2023, and the BoE presented the corresponding framework later that November.
Industry Experts Warn UK Could Fall Behind
Sasha Mills, the BoE’s executive director for financial market infrastructure, stated:
However, industry representatives argue the limits could disadvantage the UK compared to the US and EU. Tom Duff Gordon, vice president of international policy at Coinbase, said:
Simon Jennings, CEO of the UK Cryptoasset Business Council, added:
Policy experts and academics also warn that London risks losing its competitive edge in digital finance. Gilles Schemla, Professor at Imperial Business School, emphasized:
Market Impact and Future Outlook
According to the Financial Times, the stablecoin market has grown to $288 billion, primarily US dollar-pegged tokens. Coinbase predicts the market could reach $1.2 trillion by 2028, while settlements in stablecoins totaled $717.1 billion as of June 2025.
The BoE indicated the restrictions may be transitional as the financial system adapts to digital money, with a consultation paper detailing the rules expected later this year.
For UK investors, businesses, and crypto enthusiasts, the upcoming regulations could reshape the local digital finance landscape.
Source: https://coinpaper.com/11030/stablecoin-restrictions-could-hurt-uk-financial-leadership
