The Bank of England (BoE) has proposed new regulations for the country’s stablecoin market. The Bank plans to limit stablecoin holdings in individuals to a maximum of £20,000, while allowing companies to hold up to £10 million.
Bank of England Proposes £20,000 Limit on Individual Stablecoin Investments
The move is part of a comprehensive regulatory framework aimed at reducing risks and maintaining financial stability in the UK’s digital asset market.
The BoE’s proposal aims to prevent individual investors from taking excessive risks as stablecoins become more widely used as payment instruments in the country.
In addition, reserve rules have been set for stablecoin issuers that will be placed under the new BoE supervision after being audited by the UK Financial Conduct Authority (FCA).
Accordingly, a maximum of 95% of the reserve assets of such stablecoins will be allowed to be invested in short-term government bonds.
Officials stated that these regulations would both increase user trust and ensure the seamless integration of stablecoins into the UK financial system. The BoE’s proposal will enter the legal process following feedback from the public and market participants.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/the-bank-of-england-wants-to-impose-a-stablecoin-limit-on-individual-users-here-are-the-details/
