The post Crypto Regulation News: Bank of England Criticized Over Stablecoin Holding Limits appeared first on Coinpedia Fintech News
The Bank of England’s (BoE) plan to limit how much stablecoin individuals and businesses can hold is drawing sharp backlash from crypto firms and industry groups. Critics warn the move could stifle innovation, push capital out of the U.K., and isolate the country from global standards.
According to the Financial Times, the BoE is considering capping stablecoin holdings at £10,000–£20,000 ($13,600–$27,200) for individuals and around £10 million ($13.6 million) for businesses.
These rules would apply to “systemic stablecoins,” tokens already widely used in payments or expected to gain traction soon.
Officials argue the caps are necessary to protect financial stability. Without limits, they fear deposits could shift from banks into stablecoins, weakening banks’ ability to lend. Sasha Mills, the BoE’s executive director for financial market infrastructure, said the aim is to reduce the risks of sudden deposit withdrawals.
Industry leaders strongly oppose the plan:
The U.K.’s plan contrasts sharply with global peers:
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By going further than the U.S. and EU, the U.K. risks:
For an industry that thrives on mobility and cross-border participation, strict caps may leave the U.K. behind as other jurisdictions take a more flexible, innovation-friendly approach.
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