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BoE Considers Limits on Stablecoin Payments as Parliament Debates New Crypto Rules
The Bank of England plans on releasing a consultation proposal by the end of the year, Jon Cunliffe said at Innovate Finance’s annual global summit.
Updated Apr 17, 2023, 4:34 p.m. Published Apr 17, 2023, 4:17 p.m.
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The Bank of England (BoE) will consider whether to put limits on stablecoins used for payments in new rules for the sector, Deputy Governor Jon Cunliffe said in a speech on Monday.
The BoE and the Financial Conduct Authority plan on consulting on new rules for stablecoins later this year, Cunliffe said. Last May the bank said it will regulate stablecoins that could have an impact on financial stability. Meantime, the Financial Services and Markets Bill, which will help regulators put in place rules for crypto and bring stablecoins under existing payment legislation, is nearing its final stages in Parliament.
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“While, from a public policy perspective, we want competition and innovation in payments we need to guard against rapid, disruptive change that does not allow the financial system time to adjust and could therefore threaten financial stability,” Cunliffe said at the annual Innovate Finance Global Summit.
Read more: What the Bank of England’s Stablecoins Regime Could Look Like
The new rules will look to regulate stablecoins like commercial bank money, “including the requirement that the coins should be redeemable from the stablecoin arrangement, in fiat money, at par value and on demand,” Cunliffe said. Stablecoins, however, will not receive protection against failure in the same way that commercial bank deposits do. The Financial Services Compensation Scheme (FSCS) provides deposit insurance of up to 85,000 pounds (US$105,059) for bank customers.
The stablecoin rules will follow principles established by the Bank for International Settlements' Committee on Payments and Market Infrastructure and the International Organization of Securities Commissions last year, Cunliffe said.
New ledger technology that powers crypto could also make way for digital bank notes issued by central banks, or tokenized bank deposits, Cunliffe said. These could use smart contracts to settle transactions. He stressed the importance of developing an approach for tokenized bank deposits alongside the stablecoins regime.
"This will allow banks and nonbanks alike that want to develop payment solutions using new technologies to understand clearly what is possible and what is required in the respective regulatory regimes," Cunliffe said.
The bank, which is also exploring a digital pound, is looking at how it can ensure tokenized transactions settle in central bank money. One way forward would be to develop a ledger system, he said.
Read more: UK to Start Further Development Work on ‘Likely Needed’ Digital Pound
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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.
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- 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.
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Ukraine banned Polymarket and there’s no legal way for it to come back
Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access.
Ano ang dapat malaman:
- Ukraine has no legal framework for Web3 prediction markets, and current legislation provides no recognition for such platforms.
- Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access.
- Legal changes are unlikely in the near future, as Parliamentary revisions to gambling definitions are extremely improbable during wartime, leaving prediction markets in a legal deadlock.
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