The Bank of England plans to limit the holdings of stablecoins, facing strong opposition from cryptocurrency institutions

ChainCatcher news, according to the Financial Times, cryptocurrency institutions are calling on the Bank of England to abandon plans to limit stablecoin holdings, which would make the UK's regulation of this rapidly growing market stricter than that of the US or the EU.

The Bank of England plans to impose holding limits on all systemic stablecoins: a personal holding limit of £10,000 to £20,000 and a corporate holding limit of £10 million. The central bank is concerned that these tokens could weaken the banking system by siphoning off bank deposits. Tom Duff Gordon, Vice President of International Policy at Coinbase, stated, "Setting limits on stablecoins is detrimental to UK savers, the City of London, and the pound, and no other major jurisdiction sees the need to impose limits." Simon Jennings, Executive Director of the UK Cryptoassets Business Council, pointed out that stablecoin issuers cannot identify token holders in real-time, and enforcing limits would require expensive and complex new systems.