UK Crypto Groups Push Back on Bank of England Stablecoin Limits

Cryptocurrency groups are urging the Bank of England (BoE) to withdraw its proposed restrictions on stablecoin holdings, warning the move could stifle innovation and leave the UK trailing behind the U.S. and European Union in digital asset regulation.

According to the Financial Times, the BoE is considering caps of £10,000–£20,000 ($13,600–$27,200) for individuals and about £10 million ($13.6 million) for businesses on systemic stablecoins—tokens already widely used, or expected to be widely used, for payments in the UK. Officials argue the limits are necessary to prevent large deposit outflows from banks that could threaten financial stability.

Sasha Mills, BoE’s executive director for financial market infrastructure, said the restrictions aim to mitigate risks from sudden withdrawals and the rapid scaling of new payment systems.

However, industry leaders claim the proposal is unworkable. Tom Duff Gordon, Coinbase’s vice president of international policy, called the limits “bad for UK savers, bad for the City and bad for sterling,” stressing that no other major jurisdiction has such restrictions. Simon Jennings of the UK Cryptoasset Business Council added that enforcing the caps would be nearly impossible without new systems like digital IDs. Riccardo Tordera-Ricchi of The Payments Association said the plan “makes no sense,” since no caps exist on cash or bank accounts.

Meanwhile, the U.S. recently passed the GENIUS Act, establishing a stablecoin framework focused on licensing, reserves, and redemption standards—without limiting holdings. The EU’s Markets in Crypto-Assets Regulation (MiCA), now fully in effect, also avoids caps, instead emphasizing governance, reserves, and regulatory oversight.

With global competitors moving toward more flexible frameworks, UK crypto advocates argue that rigid caps could drive businesses and investors away, weakening the country’s position as a financial hub.