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UK tightens crypto rules as BoE eases stablecoin limits
The FCA finalized crypto rules last month, while the Bank of England cut reserve requirements for stablecoin issuers from 40% to 30%.
The UK is taking additional steps to build a more active crypto regulatory framework, with recent actions from both the Financial Conduct Authority and the Bank of England signaling a shift toward easier adoption for consumers and institutions, according to CoinDesk. The FCA finalized crypto rules last month, laying out guidance covering crypto firms’ capital requirements, admissions and disclosures, and a wider conduct framework. In parallel, the Bank of England moved to scrap previously proposed limits on holdings of fiat-pegged stablecoins, and reduced the reserve requirement for stablecoin issuers held at the central bank from 40% to 30%.
CoinDesk notes that earlier UK stablecoin proposals in November 2025 drew backlash for being restrictive, including a proposal to limit individuals to £20,000 of systemic sterling stablecoins and businesses to £10 million. It adds that the FCA’s earlier approach was viewed as overly cautious, citing unclear rules, slow authorization times, and requirements for financial promotions that were described as unworkable.