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The Bank of England (BoE) is preparing to introduce exemptions to its proposed limits on corporate stablecoin holdings, a move that marks a notable softening of its earlier regulatory stance.
The shift comes as the UK faces growing pressure to stay competitive with U.S. crypto policy developments, according to a new report from Bloomberg.
Sources familiar with the matter said the BoE will issue waivers for specific businesses, including crypto exchanges that require substantial stablecoin reserves for operational liquidity. The exemptions would also enable the use of stablecoins as settlement assets within the central bank’s Digital Securities Sandbox, a framework designed to test blockchain-based financial infrastructure.
The move reflects a broader effort by UK regulators to balance innovation and oversight as digital assets become increasingly embedded in financial markets. Earlier BoE proposals had imposed caps of £20,000 ($26,832) for individuals and £10 million ($13.4 million) for businesses, limits that drew criticism from industry participants who said they risked undermining liquidity and institutional participation.
The new exemption framework is expected to be outlined in a public consultation later this year, signaling a potential turning point in the UK’s digital asset policy, one aimed at fostering a more pro-growth and innovation-friendly crypto environment.