Bank of England Proposes Temporary Stablecoin Ownership Caps in New Regulatory Framework
The Bank of England has unveiled its consultation paper for a stablecoin regulatory regime, targeting implementation by mid-2025. The proposal includes controversial ownership limits—£10,000-£20,000 for individuals and £10 million for businesses—mirroring similar restrictions considered for the digital pound.
Market participants have criticized the caps as potentially disadvantaging UK competitiveness against US and European jurisdictions. The BOE maintains the measures address systemic risks from rapid deposit outflows, building on feedback from its November 2023 discussion paper.
This MOVE signals tightening oversight of sterling-denominated stablecoins as part of broader efforts to modernize UK payment systems. The banking authority emphasizes the framework aims to balance innovation with financial stability safeguards.
