Crypto Industry Opposes Bank of England's Proposed Stablecoin Holding Cap Plan

According to the Financial Times, the crypto industry is calling on the Bank of England to abandon plans to limit the number of stablecoins individuals hold. The proposal will allow the UK to impose stricter regulation on the stablecoin market than the US or the EU. Earlier, Bank of England officials said it plans to advance a proposal for holding caps for all systemic stablecoins. The cap on individual holdings is between £10,000 and £20,000 and the cap on corporates is £10 million. The plan reflects Bank of England’s concerns that stablecoins may weaken financial stability by sucking away deposits in the banking system, and also highlights that the UK is more cautious in crypto regulation than other countries and regions.