The Bank of England is ready to ease restrictions on stablecoins.
Date: 2025-10-09 Author: Henry Casey Categories: IN WORLD
The Bank of England (BOE) intends to review previously proposed stablecoin regulations, easing restrictions on their storage and use. According to Bloomberg, this decision reflects a shift in the UK regulator's approach to digital assets and a desire to support innovation in the financial sector.
Previously, the BOE's leadership, particularly Governor Andrew Bailey, took a more cautious stance. He warned that the excessive use of stablecoins could undermine trust in the traditional monetary system. The draft regulations proposed establishing limits on the storage of such assets—up to £20,000 for individuals and up to £10 million for companies.
However, these proposals have drawn sharp criticism from representatives of the crypto industry. Companies have noted that such restrictions hinder the sector's development and create the risk of capital flight to other jurisdictions. As a result, the Bank of England has revised its position and is ready to present new consultations on stablecoin regulation by the end of 2025.
One key area is expected to be authorizing the use of stablecoins within the experimental "digital securities sandbox." This will allow for the testing of new methods of settlement and circulation of digital assets, including those pegged not only to the pound sterling but also to other currencies. Experts believe this step will help develop a long-term regulatory strategy and enhance London's competitiveness in the global fintech market.
Analysts attribute the UK regulator's softening stance to growing pressure from the US, which has adopted more flexible regulations for stablecoins, including the GENIUS Act. The US regulatory framework is already stimulating the development of digital finance, and London risks losing some liquidity, investment, and qualified specialists if it maintains strict barriers.
Experts believe the introduction of more relaxed regulations will help strengthen the UK's position as a leading hub of innovation in financial technology. Furthermore, stablecoins could play a significant role in accelerating international payments and reducing transaction costs, thereby increasing the efficiency of the banking sector.
It was previously reported that the UK and US will establish a joint working group to develop unified approaches to regulating digital assets. The Bank of England's new steps in this direction could be part of a broader strategy aimed at balancing innovation and financial stability.
