UK Tightens Stablecoin Rules to Ensure Financial Stability

The UK’s Bank of England is implementing stricter regulations on stablecoins, aiming to prevent financial instability and ensure banks remain resilient. The Bank has outlined new rules that cap individual holdings at £20,000, restrict most companies’ stakes to £10 million, and require issuers to maintain a significant reserve of assets, such as central bank deposits or government bonds, to safeguard against potential risks.