Bank of England considers limit exemptions for corporate stablecoins
- BOE may release limits for crypto companies and exchanges
- UK seeks to follow US rules for stablecoins
- Bailey advocates for coexistence between stablecoins and traditional finance
The Bank of England (BOE) plans to grant exemptions to stablecoin holding limits for certain companies, including cryptocurrency exchanges, amid growing pressure to align the UK with more flexible rules adopted by the United States. The move signals a shift in regulatory approach, focusing on keeping the country competitive in the digital asset sector.
The central bank's previous proposals included restrictions of up to £20 ($26,8) for individuals and £10 million ($13,4 million) for businesses. However, the institution now consider releasing exceptions for companies that need to hold large volumes of stablecoins as part of their daily operations. Furthermore, the BOE is considering allowing the use of stablecoins as settlement assets within the Digital Securities Sandbox , its experimental environment focused on financial innovation.
The decision follows criticism from crypto industry leaders, who argued that the UK could be at a competitive disadvantage compared to the United States, where President Donald Trump's administration recently passed the GENIUS Act, legislation establishing a regulatory framework for dollar-backed stablecoins. The Bank of England is expected to detail the new guidelines in a public consultation later this year.
BOE Governor Andrew Bailey has taken a more conciliatory stance on stablecoins. In an article published in the Financial Times, he stated that it would be "wrong" to reject the use of these currencies solely on principle, recognizing their role in the technological advancement of payments.
"Indeed, I don't share this opinion, recognizing their potential to drive innovation in payment systems, both domestically and internationally. Practice matters, however, and it's crucial that these stablecoins meet the conditions that allow for public trust."
wrote Bailey.
The signaling of regulatory easing marks an important step in the integration of stablecoins into the British financial system, with a focus on stimulating innovation without compromising the security and transparency of digital transactions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Wall Street giants collectively raise rate hike forecasts, US Treasury futures continue to fall, gold drops over 1% to break 4000
After the US October CPI exceeded expectations, Goldman Sachs and Nomura added a forecast for an interest rate hike in March next year, while Deutsche Bank included a forecast for a rate hike in January next year. Currently, the market has fully priced in a 25 basis point rate hike in December, with a 13% probability for a 50 basis point hike. On Wednesday, the US Treasury spot market was closed, but Treasury futures continued to fall, with corresponding yields rising by about 2 to 4 basis points, and spot gold came under pressure, dropping by 1.1%.
No Need to Worry About the Cooling Down of AI Data Center Construction? The US Import Boom Is Unlikely to Subside in the Short Term, Real Impact May Come in 2029
It takes an average of 4.8 years from finalizing investment to starting construction of a data center project, and an additional 2.6 years from construction start to becoming operational. Servers usually cannot be installed until after the building structure and racks are completed. For trade partners such as Taiwan (China), South Korea, and Mexico who rely on US data center supply chain demand, the inertia in construction timelines provides at least a one- to two-year buffer for future exports.
Federal Reserve Major Debate: When Should the Tenure of “Number Three” Williams End?
The main point of contention is whether Williams should step down in June 2028, upon completing a full 10-year term, or in June 2027, when he reaches the mandatory retirement age of 65. Analysts point out that the Federal Reserve Board holds ultimate discretion; if he leaves early, Fed Chair Waller would be able to assert greater control over the appointment to this critical position. However, forcing Williams to shorten his term could easily be interpreted as political manipulation. Williams himself is expected to serve until June 2028.
Crypto prices
More
