Bank of England Announces Proposals on Stablecoin Regulation

On November 10, 2025, the Bank of England announced proposals to regulate stablecoins, a significant step in addressing the rapid growth of this digital asset class. Under the proposed regulations, individuals would be restricted to owning up to £20,000 in sterling-denominated systemic stablecoins, while businesses would have a higher limit of £10 million. This initiative reflects the Bank's commitment to ensuring consumer protection and maintaining financial stability in an evolving market. The announcement is part of a broader context of regulatory efforts aimed at managing the risks associated with digital currencies, as authorities worldwide grapple with the implications of cryptocurrencies on traditional financial systems. The proposed limits are designed to mitigate potential risks while allowing for innovation in the financial sector, indicating a cautious yet progressive approach by the Bank of England in navigating the complexities of stablecoin regulation.