Cryptocurrency groups and industry executives are urging the Bank of England to abandon proposed ownership caps on systemic stablecoins, £10,000–£20,000 (about $13.5K to $27K) for individuals and £10 million (about 1.35M) for businesses, arguing the limits would put the UK at a competitive disadvantage versus the US and EU and be costly or infeasible to enforce.
Crypto Industry Pushes Back Against Bank of England Stablecoin Ownership Caps
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The BoE frames the proposals as a transitional measure to protect financial stability by preventing large, rapid outflows from banks that could weaken credit provision, and plans a consultation later this year. Critics, including Coinbase and the UK Cryptoasset Business Council, say stablecoin issuers cannot reliably identify token holders and that caps would require intrusive, expensive systems such as digital IDs or constant wallet coordination, hampering payments innovation and cross‑border efficiency. The debate intensifies tensions between the BoE and the Treasury as the UK weighs promoting digital finance while managing systemic risks in a $288 billion global stablecoin market.
