UK Stablecoin Regulations Targeted for 2026 as Bank of England Launches Consultation
The United Kingdom is advancing its crypto regulatory framework with stablecoin rules expected by 2026. The Bank of England will open a public consultation on November 10 to refine oversight for asset-backed digital currencies. Market participants anticipate alignment with US standards, particularly regarding reserve requirements.
Crypto adoption in the UK has surged to seven million holders, up from 2.2 million in 2021. This growth comes despite lingering concerns about regulatory ambiguity and tax compliance. HM Revenue & Customs has intensified scrutiny of crypto gains reporting, signaling tighter enforcement.
Authorities aim to balance innovation with consumer protection as they position the UK as a digital asset hub. The Financial Conduct Authority and Treasury are developing adaptable regulations that can evolve with market developments. Clear guidelines could accelerate institutional participation while mitigating risks.
