The UK is considering temporary restrictions on stablecoins.
Date: 2025-11-07 Author: Henry Casey Categories: IN WORLD
The Bank of England plans to implement a stablecoin regulatory regime that may include temporary limits on the amount of funds users can hold. According to Bloomberg, the limit could be set at £20,000 for individuals and up to £10 million for businesses. The document also provides exceptions allowing certain categories of participants to operate without restrictions.
BoE Deputy Governor Sarah Breeden explained that the country is moving at a pace comparable to the US and is keeping pace in creating a legal framework for digital assets. She stated that the restrictions will be temporary and necessary to assess the impact of stablecoins on the country's economy and financial stability.
Breeden emphasized that the UK credit market is structured differently than the US one. In the US, a significant portion of mortgage financing is channeled through the securities market, while in the UK, commercial banks play a primary role. This difference, she noted, requires a more cautious approach to the introduction of new financial instruments to avoid risks to the banking system and the mortgage sector.
Bloomberg reports that the Bank of England intends to finalize a new regulatory framework by the end of 2025. In addition to limits, the rules will include requirements for asset reserves, increased transparency, and oversight of stablecoin issuers. These measures are expected to help strengthen trust in fiat-backed digital currencies and minimize risks to the financial system.
Previously, Bank of England Governor and Head of the Financial Stability Board Andrew Bailey called on G20 countries to strengthen oversight of stablecoins. He emphasized that these assets could pose a threat in the absence of uniform international regulatory standards.
Thus, the UK is seeking to develop a balanced approach – supporting innovation in the financial sector while avoiding potential risks for banks and consumers. The new policy will be an important step towards integrating digital assets into the traditional economy while maintaining control over the stability of the country's financial system.
