The Bank of England is preparing to allow exemptions to proposed limits on stablecoin holdings, a move that signals a more flexible stance on digital assets as global competition intensifies.
Bloomberg reported Tuesday that the UK’s Bank of England plans to grant waivers to certain firms, such as crypto exchanges that may need to hold large amounts of stablecoins for liquidity and settlement.
Market participants argue that Britain’s tougher posture could divert liquidity and innovation to New York instead of London. Officials suggested limits of up to £20,000 for individuals and £10m for businesses on systemic stablecoins, those widely used for payments. A consultation paper expected by the end of the year will detail the proposed rules.
The decision comes as industry voices raise concerns that the UK risks losing ground to the US, where the Trump administration’s GENIUS Act has already established rules around dollar-backed stablecoins.
