UK’s Stablecoin Caps Draw Criticism from Crypto Giants
The Bank of England’s proposal to impose strict limits on stablecoin ownership is facing significant opposition. Industry leaders argue that the planned caps, ranging from £10,000 to £20,000 for individuals and £10 million for businesses, are impractical and harmful to the market.
Critics claim enforcing these limits will require expensive new systems like digital IDs and constant wallet monitoring. These measures aim to prevent sudden drops in credit availability, but many believe they will make the UK less competitive globally.
- Unprecedented caps on stablecoins in the UK
- Concerns over enforcement costs and practicality
- Potential negative impact on the UK’s position in the global digital economy
Tom Duff Gordon from Coinbase argues that the caps are needless, stating, “No other major jurisdiction has deemed it necessary to impose such restrictions.”
Stani Kulechov of Aave also voices his disapproval on X, emphasizing that stablecoins don’t pose greater risks than conventional electronic money. Henry Duckworth of AgriDex warns that such regulations threaten the UK’s role in leading digital innovation.
With stablecoins nearing a $289 billion market size this year, and potential growth up to $1.2 trillion by 2028, these changes could significantly impact the industry. The debate highlights tensions between UK regulators and the booming crypto sector.
