Bank of England Plans Exemptions to Stablecoin Limits
The Bank of England is reportedly planning to grant waivers to certain businesses that need to hold large amounts of stablecoins, according to a Bloomberg report on Tuesday. The move comes as the BoE prepares to implement proposed limits on stablecoin holdings.
According to sources, the exemptions will be granted to firms such as crypto exchanges and other entities that require significant amounts of stablecoins for operational purposes. This decision aims to balance the need for regulatory oversight with the practical requirements of businesses operating in the digital asset space.
The BoE's proposal to limit stablecoin holdings was first announced earlier this year, sparking debate among industry stakeholders about the potential impact on market liquidity and financial stability. The planned exemptions are seen as a compromise aimed at mitigating these concerns while still ensuring that regulatory objectives are met.
"We understand that some businesses may require larger amounts of stablecoins for their operations," said an anonymous source close to the BoE. "By granting waivers, we can strike a balance between regulatory requirements and the needs of the industry."
The move has been welcomed by some in the crypto community, who see it as a step towards greater flexibility and understanding of the digital asset space.
"This is a positive development that acknowledges the complexities of stablecoins and their role in the broader financial system," said Jamie Smith, CEO of a leading crypto exchange. "We appreciate the BoE's willingness to adapt its regulations to accommodate the needs of businesses operating in this space."
However, others have expressed concerns about the potential risks associated with granting exemptions.
"While we understand the need for waivers, we must ensure that these are granted on a case-by-case basis and subject to strict conditions," said Dr. Emma Taylor, a financial regulatory expert. "We cannot afford to compromise on our regulatory standards, especially when it comes to stablecoins."
The BoE's decision is seen as part of a broader effort to regulate the growing digital asset space while promoting innovation and financial inclusion.
As the regulatory landscape continues to evolve, stakeholders are closely watching developments in this area. The Bank of England has not yet confirmed a timeline for implementing the proposed limits or granting waivers, but industry insiders expect further updates in the coming weeks.
Background:
The Bank of England's proposal to limit stablecoin holdings was first announced in June 2025 as part of its efforts to strengthen financial stability and mitigate potential risks associated with digital assets. The plan aims to regulate the use of stablecoins, which are designed to maintain a stable value relative to a fiat currency.
Additional Perspectives:
The move has sparked debate among industry stakeholders about the potential impact on market liquidity and financial stability. Some argue that limiting stablecoin holdings could lead to reduced market participation and increased volatility, while others see it as a necessary step towards greater regulatory clarity.
Current Status:
The Bank of England's decision to grant waivers is seen as a compromise aimed at balancing regulatory requirements with the needs of businesses operating in the digital asset space. The move has been welcomed by some in the crypto community but has also raised concerns about potential risks associated with granting exemptions.
Next Developments:
Stakeholders are closely watching developments in this area, and industry insiders expect further updates from the Bank of England in the coming weeks. As the regulatory landscape continues to evolve, businesses operating in the digital asset space will need to adapt to changing requirements and conditions.
*Reporting by Coindesk.*
