The Bank of England (BoE) has left open the possibility of withdrawing limits on stablecoin holdings.
Cointelegraph reported on Thursday that Sarah Breeden (Sarah Breeden), deputy governor of the Bank of England, told the UK House of Commons Financial Services Regulation Committee that if stablecoins spread as substitutes for bank deposits, they could lead to reduced lending and tighter credit. She said holding limits were one way to prevent that.
But the industry is pushing back, saying holding limits would make Britain be seen as a country hostile to cryptocurrencies, drive companies overseas and hamper economic growth and innovation.
In November last year, the Bank of England announced a regulatory plan for pound-linked stablecoins and proposed a holding limit of 10,000 to 20,000 pounds (about 17.6 million to 35.3 million won). Separately, Breeden said unapproved wallets that do not comply with AML and KYC rules would not be allowed. The Financial Conduct Authority plans to run a stablecoin regulatory sandbox from the first quarter of 2026 and will accept applications to issue stablecoins by the end of this year.
Chi-gyu Hwang
delight@d-today.co.kr