Bank of England eases up on new stablecoin rules | News. az
The Bank of England has dialed back its proposed regulations for sterling-backed stablecoins following pushback from the fintech sector. In its final policy draft, the central bank completely scrapped plans. . .
The Bank of England has dialed back its proposed regulations for sterling-backed stablecoins following pushback from the fintech sector. In its final policy draft, the central bank completely scrapped plans to limit how many stablecoins an individual can hold, opting instead for a £40 billion ($52. 8 billion) total issuance cap per token. The BoE also relaxed its rules on backing assets, allowing issuers to hold up to 70% of their reserves in short-term government debt—up from the previously proposed 60%. The remaining 30% must still be kept in interest-free central bank deposits,News. Azreports, citingReuters. While crypto advocates and industry groups welcomed the adjustments, reaction remains mixed. Critics argue the framework is still too restrictive compared to theEuropean Union’sMiCA framework and the highly active U. S. market. Innovate Finance pointed out that forcing issuers to keep 30% of their assets in non-yielding accounts makes the UK market uniquely tough to monetize, potentially causing sterling stablecoins to lag behind dollar and euro rivals. RECOMMENDED STORIESChina opens probe into potential chemical risks in infant diapersIran to start using blocked assets in coming daysIsraeli forces kill two Palestinian teenagers in West BankIsrael deports Greek union delegation bound for RamallahThe Bank of England is accepting final industry feedback on the rules until September 22, 2026. News. AzBy Aysel Mammadzada