Financial Times (Ft) Reported Monday that Cryptocurrency groups are calling on the Bank of England (Boe) Scratching suggestions that limit the amount of stableecoins may own individuals and businesses.
The groups warned that the rules would leave Britain with stricter supervision than the US or the European Union (EU).
According to FT, Boe -officials are planning to impose 10,000 British pounds to 20,000 British pounds ($ 13,600- $ 27,200) For individuals and approx. 10 million British pounds ($ 13.6 million) For companies on all systemic stableecoins, defined as tokens that are already widely used for payments in the UK or are expected to be in the future.
The central bank has claimed that the restrictions are needed to prevent the outflow of deposits from banks that may weaken the credit provision and financial stability.
The FT quoted Sasha Mills, BOE’s CEO of infrastructure in the financial market, and as saying that the limits would mitigate risks of sudden payment extraction and scaling of new systemic payment systems.
However, industry leaders told FT that the plan is useless.
Tom Duff Gordon, Coinbases Vice President of International Politics, said “imposing caps on stableecoins is bad for British savors, bad for the city and the bad for sterling,” adding that no other major jurisdiction has introduced such borders.
Simon Jennings from the British Cryptoasset Business Council said that enforcement would be almost impossible without new systems such as digital IDs. Riccardo Tardera-Ricchi of the Payments Association told FT, limiting “makes no sense” because there are no caps on cash or bank accounts.
The United States passed the genius law in July, creating a federal framework for payment stablecoins. The law establishes licensing, reserve and redemption standards for issuers without caps on individual holdings. The European Union has also gone on with its markets in crypto assets for regulation (Glitter)which is now fully in force across the block.
StableCOin-specific rules for asset-referring and e-money-tokens entered into force on June 30, 2024, followed by wider provisions for crypto assets and service providers on December 30, 2024. Like the US approach, Mica is unimparious, instead of focusing on reserves, governance and supervision of national regulators.
