The Bank of England (BoE) is reportedly preparing a new framework that will exempt certain firms from strict stablecoin holding limits, signaling a more pro-innovation shift in the UK’s digital asset policy.
According to Bloomberg, the move aims to keep the UK competitive with U.S. crypto markets while ensuring financial stability. Sources suggest that crypto exchanges, fintech firms, and payment providers requiring large stablecoin reserves for daily operations will benefit most from the exemptions.
The BoE is also expected to allow stablecoins as settlement assets within its Digital Securities Sandbox, expanding their use in testing blockchain-based trading and settlement systems.
Industry advocates view this as a strategic pivot toward fostering Web3 innovation, rather than restricting it. The final exemption details are expected to appear in a public consultation later this year, a step widely seen as the UK’s clearest signal yet that it intends to embrace crypto as part of its financial future.
