TLDR The Bank of England will introduce a stablecoin regulation consultation on November 10. Temporary caps on stablecoin holdings for individuals and businesses are proposed. The UK’s regulatory regime will target systemic stablecoins widely used for payments. FCA will regulate non-systemic stablecoins under a lighter framework. The Bank of England is set to introduce a [...] The post Bank of England to Launch Stablecoin Regulation Consultation on November 10 appeared first on CoinCentral.TLDR The Bank of England will introduce a stablecoin regulation consultation on November 10. Temporary caps on stablecoin holdings for individuals and businesses are proposed. The UK’s regulatory regime will target systemic stablecoins widely used for payments. FCA will regulate non-systemic stablecoins under a lighter framework. The Bank of England is set to introduce a [...] The post Bank of England to Launch Stablecoin Regulation Consultation on November 10 appeared first on CoinCentral.

Bank of England to Launch Stablecoin Regulation Consultation on November 10

TLDR

  • The Bank of England will introduce a stablecoin regulation consultation on November 10.
  • Temporary caps on stablecoin holdings for individuals and businesses are proposed.
  • The UK’s regulatory regime will target systemic stablecoins widely used for payments.
  • FCA will regulate non-systemic stablecoins under a lighter framework.

The Bank of England is set to introduce a consultation on stablecoin regulation on November 10. The move aims to align with the regulatory framework the United States is advancing for digital currencies. Deputy Governor Sarah Breeden has stated that concerns about the UK lagging are misplaced. The UK’s new rules will be focused on ensuring that stablecoins do not threaten financial stability, especially given the country’s mortgage market’s reliance on banks.

Bank of England’s Stablecoin Oversight Strategy

The Bank of England is preparing to release its long-awaited stablecoin regulation consultation this week. According to reports, the consultation will outline specific rules for stablecoins, with a focus on those that are considered “systemic.” These stablecoins, which are widely used for payments, will be subjected to the most stringent measures. The Bank aims to ensure that such digital assets do not pose risks to the financial system by maintaining effective oversight.

Sarah Breeden, the Deputy Governor of the Bank of England, has emphasized that the UK is on track to introduce its regulatory measures at the same pace as the United States. “We aim to make sure that our regime is up and running just as quickly as the U.S.,” she stated. The United States has already made significant strides in establishing regulations for digital assets, particularly stablecoins, and the UK is eager to remain competitive on the global stage.

Proposed Temporary Caps for Stablecoin Holdings

The consultation is expected to include proposed temporary caps on the amount of stablecoin individuals and businesses can hold. For individuals, the cap is set at £20,000 (approximately $26,000), while businesses will be limited to £10 million. These temporary restrictions are aimed at mitigating the potential risks of large-scale shifts in deposits from traditional bank accounts into stablecoins.

Breeden pointed out that the UK’s mortgage market is heavily bank-based, which makes it more susceptible to rapid changes in deposit movements. Therefore, these limits are being considered as a precautionary measure. By imposing these temporary caps, the Bank of England seeks to reduce the risk of destabilizing the financial system, particularly if widespread shifts toward stablecoins were to occur.

Regulation of Non-Systemic Stablecoins by FCA

While the primary focus of the new consultation is on systemic stablecoins, other, less widely used stablecoins will still be subject to regulation. However, the regulatory framework for these non-systemic stablecoins will be less stringent. The Financial Conduct Authority (FCA), which regulates financial markets in the UK, will handle these assets under a lighter regime.

This approach is expected to provide more flexibility for stablecoins that do not play a significant role in payment systems. However, it ensures that the FCA will still monitor and regulate their use, ensuring they adhere to basic consumer protection and financial integrity standards.

Broader Efforts to Modernize UK’s Financial Markets

The upcoming consultation on stablecoins is part of a broader initiative by the UK government to modernize the country’s financial markets. The government has already outlined plans to appoint a “digital markets champion” who will lead efforts to incorporate blockchain technology into wholesale financial markets. The Financial Conduct Authority has also lifted its ban on crypto exchange-traded notes, making them more accessible to a wider range of investors.

These actions show that the UK is taking steps to stay competitive with the US in the digital asset space. The stablecoin regulatory consultation is just one part of the UK’s broader strategy to ensure that its financial markets remain relevant in the evolving global economy.

The post Bank of England to Launch Stablecoin Regulation Consultation on November 10 appeared first on CoinCentral.

Market Opportunity
Lorenzo Protocol Logo
Lorenzo Protocol Price(BANK)
$0.04882
$0.04882$0.04882
+5.12%
USD
Lorenzo Protocol (BANK) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Ethereum Fusaka Upgrade Set for December 3 Mainnet Launch, Blob Capacity to Double

Ethereum Fusaka Upgrade Set for December 3 Mainnet Launch, Blob Capacity to Double

Ethereum developers confirmed the Fusaka upgrade will activate on mainnet on December 3, 2025, following a systematic testnet rollout beginning on October 1 on Holesky. The major hard fork will implement around 11-12 Ethereum Improvement Proposals targeting scalability, node efficiency, and data availability improvements without adding new user-facing features. According to Christine Kim, the upgrade introduces a phased blob capacity expansion through Blob Parameter Only forks occurring two weeks after Fusaka activation. Initially maintaining current blob limits of 6/9 target/max, the first BPO fork will increase capacity to 10/15 blobs one week later. A second BPO fork will further expand limits to 14/21 blobs, more than doubling total capacity within two weeks. Strategic Infrastructure Overhaul Fusaka prioritizes backend protocol improvements over user-facing features, focusing on making Ethereum faster and less resource-intensive. The upgrade includes PeerDAS implementation through EIP-7594, allowing validator nodes to verify data by sampling small pieces rather than downloading entire blobs. This reduces bandwidth and storage requirements while enhancing Layer 2 rollup scalability. The upgrade builds on recent gas limit increases from 30 million to 45 million gas, with ongoing discussions for further expansion. EIP-7935 proposes increasing limits to 150 million gas, potentially enabling significantly higher transaction throughput. These improvements complement broader scalability efforts, including EIP-9698, which suggests a 100x gas limit increase over two years to reach 2,000 transactions per second. Fusaka removes the previously planned EVM Object Format redesign to reduce complexity while maintaining focus on essential infrastructure improvements. The upgrade introduces bounded base fees for blob transactions via EIP-7918, creating more predictable transaction costs for data-heavy applications. Enhanced spam resistance and security improvements strengthen network resilience against scalability bottlenecks and attacks. Technical Implementation and Testing Timeline The Fusaka rollout follows a conservative four-phase approach across Ethereum testnets before mainnet deployment. Holesky upgrade occurs October 1, followed by Sepolia on October 14 and Hoodi on October 28. Each testnet will undergo the complete BPO fork sequence to validate the blob capacity expansion mechanism. BPO forks activate automatically based on predetermined epochs rather than requiring separate hard fork processes. On mainnet, the first BPO fork launches December 17, increasing blob capacity to 10/15 target/max. The second BPO fork activates January 7, 2026, reaching the final capacity of 14/21 blobs. This automated approach enables flexible blob scaling without requiring full network upgrades. Notably, node operators face release deadlines ranging from September 25 for Holesky to November 3 for mainnet preparation. The staggered timeline, according to the developers, allows comprehensive testing while giving infrastructure providers sufficient preparation time. Speculatively, the developers use this backward-compatible approach to ensure smooth transitions with minimal disruption to existing applications. PeerDAS implementation reduces node resource demands, potentially increasing network decentralization by lowering barriers for smaller operators. The technology enables more efficient data availability sampling, crucial for supporting growing Layer 2 rollup adoption. Overall, these improvements, combined with increased gas limits, will enable Ethereum to handle higher transaction volumes while maintaining security guarantees. Addressing Network Scalability Pressures The Fusaka upgrade addresses mounting pressure for Ethereum base layer improvements amid criticism of Layer 2 fragmentation strategies. Critics argue that reliance on rollups has created isolated chains with limited interoperability, complicating user experiences. The upgrade’s focus on infrastructure improvements aims to enhance base layer capacity while supporting continued Layer 2 growth. The recent validator queue controversy particularly highlights ongoing network scalability challenges. According to a Cryptonews report covered yesterday, currently, over 2M ETH sits in exit queues facing 43-day delays, while entry queues process in just 7 days.Ethereum Validator Queue (Source: ValidatorQueue) However, Vitalik Buterin defended these delays as essential for network security, comparing validator commitments to military service requiring “friction in quitting.” The upgrade coincides with growing institutional interest in Ethereum infrastructure, with VanEck predicting that Layer 2 networks could reach $1 trillion market capitalization within six years. Fusaka’s emphasis on data availability and node efficiency supports Ethereum’s evolution toward seamless cross-chain interoperability. The upgrade complements initiatives like the Open Intents Framework, where Coinbase Payments recently joined as a core contributor. The initiative, if successful, will address the $21B surge in cross-chain crime. These coordinated efforts aim to unify the fragmented multichain experience while maintaining Ethereum’s security and decentralization principles
Share
CryptoNews2025/09/19 16:37
Eyes nine-day EMA barrier near 1.3450

Eyes nine-day EMA barrier near 1.3450

The post Eyes nine-day EMA barrier near 1.3450 appeared on BitcoinEthereumNews.com. GBP/USD remains steady for the second successive session, trading around 1.3430
Share
BitcoinEthereumNews2026/01/15 11:59
Why Bitcoin Is Rising Despite Hot US Inflation Data

Why Bitcoin Is Rising Despite Hot US Inflation Data

Bitcoin is showing renewed strength, climbing close to $97,000 and reaching its highest level in nearly two months. What makes the move notable is not just the
Share
Coinstats2026/01/15 11:53