Bank of England Considers Exemptions for Stablecoin Holding Cap
- The Bank of England may exempt crypto-exchanges and large firms from its proposed £10 million ($13.3 million) stablecoin holding limit.
- Individuals would still face a cap of £10,000 to £20,000 ($13,300 to $26,600) in stablecoin holdings.
- Industry leaders argue the caps are impractical and could hinder the growth of the UK’s crypto sector.
- The Bank of England plans to include stablecoins in the UK’s Digital Securities Sandbox launched by the Treasury in late 2023.
The Bank of England’s potential exemption for large entities from its stablecoin cap has been met with mixed reactions within the UK crypto industry. Stakeholders call for a reevaluation of these limits, citing concerns about their practicality and impact on industry growth.
While exemptions for businesses might ease some restrictions, individuals remain bound by lower caps, which some argue are cumbersome and unnecessary given current financial behaviors. (Source)
