Bank of England Reshapes Stablecoin Rules for Crypto Exchanges

The Bank of England is making adjustments to stablecoin limits imposed on cryptocurrency exchanges, aiming to boost the UK’s position in the crypto market. The decision comes after pressure from industry leaders who fear losing liquidity to more lenient jurisdictions like the US and EU. This move will exempt certain holding restrictions for exchanges by year-end, facilitating greater use of stablecoins within the Digital Securities Sandbox. By aligning its approach with similar regulations in other major economies, the Bank aims to maintain a competitive edge and foster innovation.