UK FCA and Central Bank Advance Crypto Regulatory Rules, Remove Limits on Fiat-Backed Stablecoin Holdings

Odaily reported that the UK Financial Conduct Authority finalized crypto rules last month, providing guidance on capital requirements, admission and disclosure, and a broader conduct framework for crypto firms.

The Bank of England has removed previously proposed limits on holdings of fiat-backed stablecoins and reduced the reserve requirement that issuers must hold at the central bank from 40% to 30%. The stablecoin proposal put forward in November 2025 had restricted individual holdings of systemic sterling stablecoins to no more than £20,000 and corporate holdings to no more than £10 million. (CoinDesk).