Leading cryptocurrency and payments associations in the United Kingdom have formally opposed the Bank of England’s proposed regulatory framework for stablecoins, specifically targeting provisions that would impose caps on individual holdings. Industry representatives argue that such restrictions would create significant operational challenges and impose substantial compliance costs on both service providers and consumers.
The proposed regulations, which aim to maintain financial stability, would reportedly limit the amount of stablecoins any single user could hold within payment systems. Trade bodies representing the digital asset sector contend that these measures would be particularly difficult to enforce effectively across decentralized networks and could potentially drive innovation offshore.
Industry stakeholders have called for a more balanced regulatory approach that addresses systemic risk concerns without stifling technological advancement or compromising the UK’s competitive position in the growing digital assets market. The ongoing consultation process reflects broader tensions between traditional financial regulation and the rapidly evolving cryptocurrency ecosystem, with industry participants advocating for frameworks that support responsible innovation while maintaining appropriate safeguards.
