Crypto Industry Unimpressed by Possible Exemptions from Bank of England Stablecoin Cap

The Bank of England's potential exemption of crypto exchanges and large firms from its proposed £10 million stablecoin holding cap has drawn lukewarm reactions from the UK crypto industry. While the central bank plans to retain stricter limits for individuals—capping holdings between £10,000 and £20,000—industry leaders argue the restrictions remain impractical and could stifle growth.

Stakeholders are pushing for a full recalibration of the policy, dismissing the exemptions as insufficient. The original proposal, unveiled in September, was framed as a financial stability measure but has faced consistent criticism for its potential to undermine the sector's competitiveness.

Market participants note the revised approach still fails to address Core concerns. "The caps are a solution in search of a problem," one industry source remarked. The debate highlights tensions between regulatory caution and the crypto industry's demand for operational flexibility.