UK to Launch Consultation on Stablecoin Regulation on November 10
Bank of England reveals framework for systemic stablecoins and proposes holding limits for individuals and businesses
The United Kingdom’s central bank will publish a formal consultation on regulating stablecoins on November 10, placing “systemic” tokens under the supervision of the Bank of England while other stablecoins remain regulated by the Financial Conduct Authority under a lighter regime.
Deputy Governor Sarah Breeden confirmed the timeline, saying that the UK aims to bring its regulatory regime in line with the overhauls underway in the United States.
She emphasised that the regime will apply first to stablecoins likely to be widely used in retail or payments and that transitional caps on holdings may be imposed—reports indicate proposed limits of up to £20,000 for individuals and £10 million for businesses.
The upcoming framework builds on previous 2023 proposals and signals a shift in the Bank of England’s stance towards digital assets, with Governor Andrew Bailey stating that stablecoins used as money must be regulated “like money” and potentially granted access to central bank reserve accounts.
Many industry participants welcome the move, noting that clearer rules and cross-border alignment may support innovation, particularly given the U.K.’s ambition to remain a global hub for financial technology.
Others—particularly within the crypto sector—express concern over the proposed caps, arguing they could hamper growth or push activity offshore.
The consultation will seek feedback on issues such as backing assets for stablecoins, redemption guarantees, resolution arrangements, and transitional holding limits.
Final rules are expected to be in place by late 2026, marking a significant step in the U.K.’s effort to integrate digital currency innovation within a regulated financial-services framework.
Deputy Governor Sarah Breeden confirmed the timeline, saying that the UK aims to bring its regulatory regime in line with the overhauls underway in the United States.
She emphasised that the regime will apply first to stablecoins likely to be widely used in retail or payments and that transitional caps on holdings may be imposed—reports indicate proposed limits of up to £20,000 for individuals and £10 million for businesses.
The upcoming framework builds on previous 2023 proposals and signals a shift in the Bank of England’s stance towards digital assets, with Governor Andrew Bailey stating that stablecoins used as money must be regulated “like money” and potentially granted access to central bank reserve accounts.
Many industry participants welcome the move, noting that clearer rules and cross-border alignment may support innovation, particularly given the U.K.’s ambition to remain a global hub for financial technology.
Others—particularly within the crypto sector—express concern over the proposed caps, arguing they could hamper growth or push activity offshore.
The consultation will seek feedback on issues such as backing assets for stablecoins, redemption guarantees, resolution arrangements, and transitional holding limits.
Final rules are expected to be in place by late 2026, marking a significant step in the U.K.’s effort to integrate digital currency innovation within a regulated financial-services framework.
