The U.K.’s Financial Conduct Authority and Bank of England have taken recent steps that could make the country’s crypto rulebook more workable for firms and stablecoin issuers. The moves include finalized FCA crypto rules and a softer Bank of England stance on stablecoin limits and reserve requirements.
The U.K.’s Financial Conduct Authority and Bank of England have taken recent steps that could make the country’s crypto rulebook more workable for firms and stablecoin issuers. The moves include finalized FCA crypto rules and a softer Bank of England stance on stablecoin limits and reserve requirements.
The shift matters because U.K. crypto firms have faced years of uncertainty around approvals, marketing rules and the division of responsibilities between regulators. Earlier Bank of England proposals, published in November 2025, would have capped individual holdings of systemic sterling stablecoins at £20,000 and business holdings at £10 million, drawing criticism from industry participants who saw the limits as too restrictive for large-scale use.
U.K. regulators have made a fresh push to clarify the country’s crypto framework, with the Financial Conduct Authority finalizing rules for crypto firms and the Bank of England easing parts of its proposed stablecoin regime. The developments were described in a CoinDesk opinion column by Wirex CEO Chet Shah as a sign that the U.K. may be moving closer to its long-stated ambition of becoming a global cryptoasset hub.
The FCA’s finalized rules cover areas including capital requirements, admissions and disclosures, and conduct expectations for crypto businesses. Separately, the Bank of England has dropped previously proposed holding limits for fiat-pegged stablecoins and reduced the central bank reserve requirement for issuers from 40% to 30%.
The shift matters because U.K. crypto firms have faced years of uncertainty around approvals, marketing rules and the division of responsibilities between regulators. Earlier Bank of England proposals, published in November 2025, would have capped individual holdings of systemic sterling stablecoins at £20,000 and business holdings at £10 million, drawing criticism from industry participants who saw the limits as too restrictive for large-scale use.
The source also places the U.K. moves in a broader international context. It notes that other jurisdictions have advanced their own frameworks, including the European Union’s MiCA regime and the U.S. GENIUS Act, while stablecoin activity has continued to expand globally. According to the column, clearer rules may be important for jurisdictions trying to attract crypto companies while maintaining consumer protections.
The U.K. framework is still not finished. Firms operating in the country are working toward October 2027, when authorization under the new crypto regime becomes mandatory, and further consultations are expected. Areas still awaiting more detail include DeFi guidance, operational resilience standards for firms using distributed ledger technology, and the tax treatment of digital assets.
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