The Bank of England has faced a wave of criticism from representatives of the crypto market following the announcement of plans to impose restrictions on the ownership of stablecoins. According to the regulator’s initiative, a limit of between £10,000 and £20,000 is proposed for individuals, while for companies, the limit would be up to £10 million.
This is reported by Finway
Reasons and Consequences of Limiting Stablecoins
The Bank of England argues that such restrictions are necessary to minimize risks to the banking system in the event of a large-scale withdrawal of deposits. As noted by Sasha Mills, Executive Director for Financial Market Infrastructure, the establishment of limits will help reduce the danger of a sudden decrease in lending and borrowing for businesses, as well as the impact of rapidly scalable payment systems on the stability of the financial sector.
“Limits will help mitigate risks to financial stability that arise from sudden declines in lending to businesses and households, as well as from rapidly scaling systemic payment systems.”
At the same time, experts and industry representatives warn that such measures could lead to the UK lagging behind in the field of digital finance. They emphasize that there are no similar restrictions in the US and EU, putting the British market at a disadvantage.
Criticism from the Crypto Industry and Academics
Tom Duff Gordon, Vice President of International Policy at Coinbase, emphasized that limits on stablecoins will negatively impact investors, the London financial sector, and the value of the pound sterling. According to him, no other leading jurisdiction sees the need to impose such restrictions.
Simon Jennings, Executive Director of the UK Cryptoasset Business Council, believes that in practice, such limits will be ineffective, as stablecoin issuers cannot identify token holders without implementing complex and costly solutions, such as digital identifiers or ongoing coordination between wallets. The Payments Association also stated that restrictions like those proposed make no sense, as there are no similar limits for cash, bank accounts, or electronic money.
Professor Gilles Shemla of Imperial College Business School emphasized that stablecoins have already become the foundation of the global digital economy, and delays in developing a regulatory framework could deprive London of its competitive advantages.
Currently, the stablecoin market is valued at $288 billion, primarily due to tokens pegged to the US dollar. In July, the US Congress passed the GENIUS Act, which established the regulatory foundations for integrating stablecoins into the country’s financial system.
Coinbase predicts that by 2028, the stablecoin market could grow to $1.2 trillion. As of June 2025, the volume of transactions in stablecoins on exchanges had already reached $717.1 billion.
The Bank of England emphasized that the restrictions are likely to be temporary while the financial system adapts to digital currencies. Detailed regulatory conditions are promised to be published in a consultation document by the end of the year.
It was previously reported that the market capitalization of stablecoins exceeded $250 billion, with Ethereum and Tron networks remaining the main leaders.