Share this article
Bank of England Plans Exemptions to Stablecoin Limits: Bloomberg
The BoE will grant waivers to some businesses like crypto exchanges that need to hold large amounts of the tokens.
Oct 8, 2025, 11:52 a.m.
Make us preferred on Google
What to know:
- The Bank of England is planning exemptions to its proposed limits on stablecoins holdings, Bloomberg reported on Tuesday.
- The BoE will grant waivers to some firms that need to hold large amounts of tokens, like crypto exchanges, the report said.
- Last month, it was reported that BoE officials planned to impose caps of 10,000-20,000 pound stablecoin caps for individuals and 10 million pounds on businesses.
The Bank of England (BoE) is planning exemptions to its proposed limits on stablecoins holdings, Bloomberg reported on Tuesday.
The BoE will grant waivers to some firms that need to hold large amounts of tokens, like crypto exchanges, the report said, citing a person familiar with the matter.
STORY CONTINUES BELOW
The U.K.'s central bank will also allow firms to use stablecoins for settlement in its Digital Securities Sandbox, the people said.
Stablecoins are digital tokens tied to the value of traditional financial (TradFi) assets such as fiat currencies.
Last month, it was reported that BoE officials planned to impose caps of 10,000-20,000 pounds ($13,400-$26,800) for individuals and 10 million pounds ($13.4 million) on stablecoins.
Digital asset industry figures criticized the plans as unworkable.
BoE governor Andrew Bailey expressed skepticism about stablecoins in July, highlighting possible threats to financial stability and warned global investment banks against developing their own.
Stablecoins have ascended to an even higher prominence in the crypto industry over the last year, with greater interest from TradFi institutions and the introduction of formal regulatory regimes for their governance in places like the U.S. and Hong Kong.
The stern approach to restricting their use previously hinted at by the BoE therefore appeared to demonstrate the U.K. being out of step with other major financial jurisdictions.
The BoE did not respond to CoinDesk's request for comment.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
DeFi, ethics disputes remain in Senate crypto bill ahead of Jan. 15 vote
The Senate is approaching a potential markup that may advance crypto legislation to a vote, and industry insiders are amassing for a lobbying push this week.
What to know:
- The U.S. Senate is potentially as close as it's ever been to a crypto market structure law, as the Senate Banking Committee's chairman said the panel will be ready to mark up the latest draft next week.
- It's still unclear how much Democrats might push back against this timeline, considering most of the big-ticket disputes remain to be resolved between the parties.
- A negotiation document that emerged after a meeting among senators on Tuesday demonstrates that many of the Democrats' requests have potentially been satisfied, but key concerns over the ethics of senior government officials, the treatment of DeFi and the question of stablecoins offering yield still await answers.
- Crypto insiders will visit Senate offices this week to cheer on the negotiations.
Top Stories
