The Bank of England (Boe) already revises its proposed rules for Stablecoin holding, which indicates that it may offer exceptions to the proposed hats on the number Stablecoins Individuals and companies can hold.
In September, the Bank of England confirmed that the planned to limit the ownership of Stablecoins. According to the proposals, individuals would be limited to somewhere between £ 10,000 ($ 13 310) and £ 20,000 ($ 26,618) worth StableCoins. For companies, the limit would be £ 10,000,000 ($ 13,309,376).
But on October 6 Bloomberg reported that Bank of England planned exceptions for certain companies that had legitimate requirements for having large quantities of Stablecoins, such as exchanges.
The personal limits apparently goes unchanged, although Comments of senior Bank of England -figures indicate that a consultation document about Britain’s Stablecoin regimen will be coming in the coming months.
If implemented, the rules would be unique in global digital asset rules and much stricter. Neither US slate of StableCoin legislation neither not the EU’s Markets in crypto access regulation (Micar) Legislation sets limits on how many Stablecoin’s individuals and companies are allowed to own.
What seems to drive Boe’s concern about the unknown effects adoption will have on traditional market structures. Specifically, Boe is worried about not unintentionally weakening the link between credit creation – usually performed by banks – and money.
“It is at least partially possible to distinguish money from credit regulations, with banks and stablecoins such as coexist and non-banks that perform more of the credit provision role,” wrote Boe -Governor Andrew Bailey in FT last week.
“But it is important to consider the consequences of such a change carefully before we proceed. Only then can we formulate a regime that both support this coexistence throughout the economic cycle and carefully handle the transition to a future financial system.”
This was further repeated in a speech Given by CEO Sasha Mills at a conference in Amsterdam:
“Meanwhile, can apply to keep limits on Stablecoins allow us to learn more about the potential impact on the cost and availability of credit and mitigate the risk of a disorder.”
Predictably received the proposals counter -reaction within and outside the digital asset industry, which has probably not been dampened by this week’s walkback.
Ben Lee, Krypto taxpartner at the tax service company Andersen, published a Open letter who showed up in the Financial Times and called Caps a “blunt instrument that will stifle digital innovation in British financial services.”
“Far from protecting consumers, the regulation would simply isolate banks from competition and send an unthinkable message: the UK is closed to digital asset companies.”
Look at | Cut costs and streamlining: the case for StableCoins
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