BoE to Propose Stricter Stablecoin Rules with Transaction Caps on Nov. 10

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The Bank of England will release its long-awaited consultation on stablecoin regulation on November 10, outlining a tiered system with temporary transaction limits. According to reports from Bloomberg and Reuters, the new rules will impose a £20,000 cap for individuals and a £10 million cap for businesses.

The regulatory regime will distinguish between “systemic” stablecoins, which will face direct BOE oversight due to their potential use in payments, and other stablecoins, which will remain under the Financial Conduct Authority’s existing, lighter regime.

Deputy Governor Sarah Breeden defended the stringent caps, explaining they are designed to protect the UK’s bank-centric mortgage market from the risk of rapid deposit shifts into digital currencies.

Despite perceptions of the UK trailing the US, Breeden asserted that the British regime will be up and running “just as quickly as the US.”