UK Finalizes Crypto Rules, Cuts Stablecoin Reserves to 30% to Bolster Hub Ambitions
Updated
Updated · CoinDesk · Jul 11
UK Finalizes Crypto Rules, Cuts Stablecoin Reserves to 30% to Bolster Hub Ambitions
2 articles · Updated · CoinDesk · Jul 11
Summary
The FCA has finalized the UK’s crypto regime, setting capital, disclosure and conduct rules as regulators move from consultation to implementation.
The Bank of England paired that with a softer stablecoin framework, dropping proposed holding limits and reducing required central-bank reserves for issuers from 40% to 30%.
Those changes reverse parts of a tougher 2025 approach that had capped individuals at £20,000 and businesses at £10 million in systemic sterling stablecoins, drawing industry criticism that the UK was stifling scale.
A £40 billion cap on any single systemic sterling stablecoin still remains, while the FCA plans further consultation later this year on rules once an issuer is deemed systemic.
The broader test comes by October 2027, when UK crypto firms must be authorized under the new regime, with unresolved issues including DeFi, operational resilience and digital-asset tax treatment.