Bank of England plans stablecoin cap exemptions as UK faces pressure to match US rules: report

The Bank of England is reportedly reconsidering its proposed stablecoin regulations, planning exemptions to caps amid mounting pressure to align with United States cryptocurrency frameworks. The BOE's initial regulatory proposals established strict stablecoin limits of £20,000 ($26,832) for individual users and £10 million for business entities, potentially constraining the UK's digital asset competitiveness.

This regulatory shift signals the UK's growing recognition that overly restrictive cryptocurrency policies could hamper its position in the global blockchain economy. As DeFi protocols and digital currencies gain mainstream adoption, British regulators face increasing pressure to balance consumer protection with market innovation.

The potential exemptions could significantly impact the UK's cryptocurrency landscape, particularly for institutional investors and businesses leveraging stablecoins for cross-border payments and treasury management. This development comes as global financial hubs compete to establish crypto-friendly regulatory environments while maintaining financial stability.

Market analysts suggest these regulatory adjustments could boost confidence in British cryptocurrency markets, potentially attracting more blockchain companies and digital asset investments to London's financial district, positioning the UK as a competitive player in the evolving digital currency ecosystem.