Crypto Firms Warn: Bank of England’s Stablecoin Limits Are Unworkable

A heated debate is unfolding in the United Kingdom. The Bank of England (BoE) plans to impose strict caps on the amount of stablecoins that individuals and businesses can hold. But the crypto industry is sounding the alarm: it calls the proposal unworkable, claiming it would harm savers, damage London’s financial hub, and weaken the pound itself.

Proposed Rules: £20,000 for Individuals, £10 Million for Companies Under the new framework, individuals could be limited to owning stablecoins worth between £10,000 and £20,000 ($13,600 to $27,200), while companies would face a cap of around £10 million ($13.6 million). These restrictions would apply to “systemic stablecoins” — tokens already widely used for payments in the U.K., or those expected to gain such use in the future. The BoE argues that the caps are necessary to prevent a massive outflow of deposits from banks, which could undermine lending and financial stability.

Industry Pushback: “Bad for Savers, City, and the Pound” Crypto leaders have fiercely criticized the plan. 🔹 Tom Duff Gordon, Vice President for International Policy at Coinbase, said the move would be “bad for U.K. savers, bad for the City, and bad for the pound,” stressing that no other major jurisdiction has imposed such limits. 🔹 Simon Jennings of the U.K. Cryptoasset Business Council argued that enforcement would be nearly impossible without new digital identification systems. 🔹 Riccardo Tordera-Ricchi of the Payments Association added that the limits “make no sense,” since there are no caps on cash or bank accounts.

U.S. and EU: Regulation Without Caps The British plan contrasts sharply with approaches elsewhere. In the United States, the GENIUS Act creates a federal framework for payment stablecoins, setting clear standards for licensing, reserves, and redemptions — but without restricting ownership. Meanwhile, the EU’s MiCA regulation, now fully in effect, focuses on reserves, governance, and supervision, but also places no limits on holdings.

A Risk to the U.K.’s Competitiveness While the BoE insists its aim is financial stability, industry voices warn the move could make London far less attractive for innovation. If these limits are enforced, capital and businesses may flow to friendlier jurisdictions. The battle over stablecoins is becoming a test of whether the U.K. can maintain its status as a global financial center — or whether strict rules will drive away the very innovators shaping the future of digital finance.

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