BoE Proposes £20,000 Holding Limit for Individuals in New Stablecoin Rules

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The Bank of England has unveiled its plan to regulate stablecoins, and it includes a potential holding limit of £20,000 for individuals. The proposal, detailed in a new consultation paper, aims to create a regulatory framework for “systemic stablecoins” that could threaten UK financial stability.

A key consumer-facing measure is the suggested cap on individual holdings. The BoE stated, “We propose that issuers implement per-coin holding limits of 20,000 GBP for individuals.” Businesses would face a much higher limit of £10 million, with exemptions possible for operational needs.

Beyond user limits, the regime would require issuers to back their stablecoins with secure assets. At least 40% of liabilities would need to be held as deposits at the BoE itself, with the remainder allowed in short-term UK government debt. The consultation is open for feedback until February 2026.