CATENAA, Wednesday, November 12, 2025- The Bank of England plans to unveil its long-awaited stablecoin regulatory framework on November 10, aiming to align with recent U.S. developments and support safe innovation in digital payments.
The new framework targets “systemic” stablecoins expected to play a major role in financial transactions, while smaller stablecoins will remain under the Financial Conduct Authority’s lighter oversight.
The dual-tier approach introduces temporary holding caps of £20,000 ($26,000) for individuals and £10 million for businesses to protect banks and maintain financial stability in the UK’s mortgage-dependent system.
Deputy Governor Sarah Breeden said the regime will be operational “just as quickly as the U.S.” and dismissed suggestions that Britain is lagging in digital asset regulation. The consultation will be formally published on November 10.
The UK government is also accelerating blockchain modernization with the appointment of a “digital markets champion” to oversee tokenization in wholesale finance.
A Dematerialisation Market Action Taskforce will replace paper-based share certificates with digital records, enhancing efficiency.
The framework complements the FCA’s recent lifting of its four-year ban on crypto exchange-traded notes, expanding investor access beyond professional clients. HM Revenue & Customs has intensified oversight of crypto taxation, sending 65,000 “nudge letters” to suspected noncompliant investors, a 134% increase from last year.
The stablecoin rules and broader blockchain initiatives position the UK as a competitive jurisdiction for responsible crypto innovation, aiming to balance market growth with investor protection and financial system stability.
