The UK is preparing to treat stablecoins as regular money by 2026.
Date: 2025-10-22 Author: Gabriel Deangelo Categories: IN WORLD
The Bank of England (BoE) has announced its intention to complete a comprehensive regulatory framework for stablecoins by the end of 2026. This initiative aims to strengthen the UK's position as a global leader in digital finance and crypto regulation.
BoE Governor Andrew Bailey noted that digital assets used in payment transactions should be regulated by the same standards as fiat money. The regulator intends to implement strict user protection, reserve management, and risk control mechanisms. Stablecoin issuers will be able to access the central bank's reserves, and the requirements for their activities will be comparable to those of banks.
A public consultation will begin on November 10, 2025, during which representatives of the financial sector, fintech companies, and digital asset issuers will be able to submit proposals and comments. Based on their feedback, a unified regulatory framework will be developed, including standards for reserve assets, token redemption provisions, and custody requirements.
In parallel, the Financial Conduct Authority (FCA) will conduct its own consultation regarding the issuance and servicing of stablecoins. Both bodies plan to finalize a common regulatory framework by the end of 2026.
During the transition period, the authorities are considering introducing temporary limits on stablecoin ownership—from £10,000 to £20,000 per user. These measures will act as a preventative measure, allowing for the monitoring of market risks and participant behavior during the early stages of the new system's implementation. While these restrictions have sparked discontent among crypto industry representatives, the Bank of England emphasizes their temporary nature and necessity for maintaining financial stability.
Financial institutions and fintech companies have already begun adapting to the new conditions. Many banks are testing tokenized deposits—digital versions of traditional currencies that could serve as a bridge between traditional banking and blockchain finance.
Experts believe that the adoption of a unified regulatory framework will be an important step toward integrating digital currencies into the everyday economy. They believe that by implementing clear rules, the UK will be able to strengthen its status as a leading hub for innovative financial technology and set the direction for global reforms in the cryptoasset sector.
