UK Takes Major Step to Tame Crypto, as BoE Unveils Systemic Stablecoin Plan

The United Kingdom has launched a decisive move to bring the crypto world into the fold of traditional finance, with the Bank of England publishing its proposed regulatory regime for “systemic stablecoins.” The consultation paper marks a pivotal moment in the UK’s approach to digital assets.

The proposed framework is designed to address financial stability risks posed by sterling-denominated stablecoins that become widely used for payments. Its core pillars include strict reserve requirements—40% must be held at the BoE—and potential holding limits of £20,000 for individuals.

With the feedback period open until February 2026, the government and central bank are aiming to finalize the regulations by the end of the year, positioning the UK as a jurisdiction with clear, if rigorous, rules for the evolving crypto market.