The Bank of England is facing industry backlash over plans to cap individual stablecoin holdings at £20,000 and business holdings at £10 million.
The proposal, introduced in a November 2025 consultation, aims to prevent large-scale shifts of deposits from traditional banks into digital assets.
Adriana Ennab of Stand With Crypto said the cap is intended to “protect financial stability and prevent large outflows” during a transition period.
Crypto founders argue the limits would restrict everyday business operations, including cross-border payments, payroll, and supply chain transactions.
Some firms have already moved operations offshore, with others warning they would choose alternative jurisdictions if the rules are implemented.
Critics also highlight enforcement challenges, noting that self-custodial wallets make it difficult to monitor or enforce holding limits.
Deputy Governor Sarah Breeden has indicated the Bank may consider adjustments, as regulators weigh financial stability concerns against industry growth.