The Bank of England’s plans to impose restrictions on the ownership of stablecoins have sparked a wave of criticism from representatives of the crypto industry and experts. The regulator proposes to set a limit for individuals ranging from £10,000 to £20,000, and for businesses – up to £10 million.
This is reported by Business • Media
Reasons for the Restrictions and Market Reaction
According to representatives of the Bank of England, the aim of such measures is to reduce potential risks to the stability of the banking system in the event of mass and rapid withdrawals of deposits. The idea of introducing limits on transactions in stablecoins was first announced back in April 2023, and in the fall of the same year, the regulator presented detailed conditions.
“The limits will help mitigate risks to financial stability that arise from sudden declines in the volume of lending to businesses and households, as well as from rapidly scaling systemic payment systems.”
However, market participants believe that such measures could lead to a loss of the United Kingdom’s competitive advantages compared to the United States and the European Union. Tom Duff Gordon, Vice President of International Policy at Coinbase, emphasized that the restrictions would negatively impact investors and the country’s financial sector, as none of the leading jurisdictions have imposed similar limits.
Simon Jennings, Executive Director of the UK Cryptoasset Business Council, highlighted that implementing such restrictions is complex and costly, as stablecoin issuers are unable to track token holders. This would require sophisticated digital identifiers or constant coordination between wallets.
Potential Consequences for Market Development
The Bank of England’s plans have also been criticized by The Payments Association, which noted that restrictions on the ownership of stablecoins make little sense, as there are no similar limits for cash, bank accounts, or electronic money. Scholars add that delays in forming a regulatory framework could lead to a loss of London’s leadership in the field of digital finance. Professor Gilles Chemla from Imperial Business School emphasized that stablecoins have already become an important part of the global digital economy.
As of 2025, the stablecoin market is estimated to be worth $288 billion, primarily due to tokens pegged to the US dollar. In July, the US Congress passed the GENIUS Act, which established regulatory frameworks for the integration of stablecoins into the financial system. Meanwhile, Coinbase predicts that by 2028, the market could grow to $1.2 trillion, and by June 2025, the volume of transactions in stablecoins could reach $717.1 billion.
The Bank of England clarified that the proposed limits may be temporary and will remain in effect until the financial system adapts to digital currencies. A detailed consultation document regarding the regulation of stablecoins is set to be published later this year.