UK Bank of England to Align Stablecoin Regulations with US Standards

The Bank of England (BoE) is set to introduce new regulations for stablecoins, mirroring the approach taken by the U.S. regulatory framework in a bid to ensure safer digital finance for individuals and businesses. The BoE’s regulation will focus on aligning UK-based stablecoin rules with those established in the United States, aiming to mitigate financial risks and promote stability. 20,000 pounds (£26,000) will cap individual holdings of stablecoins, while business holdings will be limited to 10 million pounds. The BoE is coordinating closely with U.S. regulators like the Federal Reserve and Treasury to ensure synchronization on digital asset rules across both nations. This collaborative approach aims to prevent regulatory arbitrage and maintain consistency in standards for stablecoins.