The Bank of England's proposal to exempt caps on stablecoin holdings has drawn a lukewarm response from the UK crypto industry, with industry insiders calling for the complete removal of related restrictions
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The Bank of England's proposal to exempt caps on stablecoin holdings has drawn a lukewarm response from the UK crypto industry, with industry insiders calling for the complete removal of related restrictions
According to Decrypt, the Bank of England may offer exemptions to its proposed cap on stablecoin holdings, allowing cryptocurrency exchanges and other large entities to exceed the current corporate limit of £10 million ($13.3 million). However, the proposal has received a lukewarm response within the UK crypto industry, with professionals calling for the complete removal of such restrictions. Under previous plans, the Bank of England would impose a stablecoin holding limit of £10,000 to £20,000 ($13,300 to $26,600) per individual user, which remains outside the scope of exemption. Simon Jennings, Executive Director of the Cryptoassets Business Council in the UK, said retail user caps could be "cumbersome, expensive, and unenforceable" in practice. Varun Paul, Senior Director at Fireblocks, pointed out that monitoring total holdings is extremely difficult since users can hold multiple wallets. Tom Duff Gordon, Vice President at Coinbase, criticized the move, noting no other major jurisdiction sees such caps as necessary. There are widespread concerns in the industry that the policy could hinder the development of the UK's crypto sector.
Navigating Web3 tides with focused insightsTechFlow news, October 10 — According to Decrypt, the Bank of England may provide exemptions to its proposed cap on stablecoin holdings, allowing cryptocurrency exchanges and other large entities to exceed the £10 million ($13.3 million) corporate holding limit. However, the proposal has drawn lukewarm reactions within the UK crypto industry, with professionals calling for the complete removal of such restrictions.
Under previous plans, the Bank of England would impose a stablecoin holding cap of £10,000 to £20,000 ($13,300 to $26,600) per individual user, a restriction not subject to exemption. Simon Jennings, Executive Director of the UK Cryptoassets Business Council, said retail user caps could be "cumbersome, expensive, and unenforceable" in practice.
Varun Paul, Senior Director at Fireblocks, pointed out that monitoring users' total holdings is extremely difficult since individuals can hold multiple wallets. Tom Duff Gordon, Vice President at Coinbase, criticized the move, noting no other major jurisdictions have deemed such caps necessary. The industry widely fears the policy could hinder the development of the UK's crypto sector.
