UK Crypto Regulation Takes Shape As FCA And Bank Of England Finalize New Rules

The UK has taken its clearest steps yet toward becoming a serious crypto hub. Within days of each other, the Financial Conduct Authority and the Bank of England rolled out new rules covering capital requirements, disclosures, and stablecoin reserves, ending years of slow progress since the “global cryptoasset hub” goal was first announced back in 2022.

Stablecoin Rules Get Friendlier

The Bank of England scrapped earlier proposed limits on fiat-pegged stablecoin holdings and lowered the reserve requirement for issuers from 40% to 30%. Previous plans had capped individual holdings at £20,000 and business holdings at £10 million, a move the industry said was too restrictive to support real growth.

Catching Up With Global Peers

Non dollar stablecoin adoption has grown sharply worldwide, with unique holders rising 30 times over between January 2023 and February 2026, according to Visa and Dune data. The EU and US have already built out clearer frameworks through MiCA and the GENIUS Act, putting pressure on the UK to keep pace.

What Comes Next

Firms operating in the UK must be authorized under the new crypto regime by October 2027. A £40 billion cap on systemic sterling stablecoins remains in place for now, though regulators have signaled it may be revised as adoption grows. Political continuity following a leadership change in the UK government will also test whether this regulatory momentum holds.