Bank of England Introduces £20K Stablecoin Cap for Individuals, £10M for Businesses

The Bank of England (BOE) has proposed a sweeping new stablecoin cap that limits how much individuals and companies can hold in certain digital currencies. Under the plan, individuals will be restricted to holdings of £20,000, while most businesses will face a £10 million ceiling. The proposal marks a pivotal moment for the UK’s growing crypto economy as regulators move to balance innovation with systemic safety.

This choice comes after a lengthy internal discussion about the growing importance of digital tokens in the financial system. With the usage of stablecoins for payments and settlement moving to a much larger scale. BOE has viewed this development with concern, as wide-scale adoption could disrupt traditional banking structures by removing money from bank deposits. The stablecoin cap serves as a protection against large-scale withdrawals of liquidity. Which can be disruptive to the broader credit market.

With this limit, the UK central bank is also signaling firmly that while it is supportive of technological advancement. It also has absolutely no intention of losing control over the speed of the digital transformation of finance.

🇬🇧 JUST IN: The UK’s BOE proposes a £20K cap on individual stablecoin holdings and £10M for businesses. pic.twitter.com/85JXOrs5X5

— Cointelegraph (@Cointelegraph) November 10, 2025

Why the BOE Believes a Stablecoin Cap Is Necessary

The BOE’s decision is rooted in one key concern ,  financial stability. As stablecoins gain mainstream traction, regulators fear a potential scenario where consumers move large sums of money out of banks and into stablecoins. Such migration could shrink the funds available for lending and weaken the monetary transmission system.

Additionally, officials contend that stablecoins are acting more and more like money – especially regarding payments or cross-border settlements. If digital assets are not effectively regulated, they could transition to unregulated substitutes for fiat currency, embedding risks to the financial ecosystem.

The new stablecoin cap is thus meant to act as a speed-brake. It is not to stifle innovation, but to prevent the uncontrolled expansion of private digital money that could challenge financial sovereignty.

Impact on Crypto Business UK

The new proposal has triggered mixed reactions across the UK crypto business landscape. Industry leaders fear the stablecoin cap could discourage investment and push innovation offshore. Critics argue that such restrictions risk portraying the UK as overly cautious compared to markets like the US or Singapore. This is where digital asset frameworks are seen as more permissive.

However, supporters say the move adds much-needed credibility to the UK’s digital asset regulation environment. By clearly defining risk thresholds, the BOE aims to make the market safer for both institutional and retail users. This clarity could attract long-term investors who prefer operating under a predictable regulatory structure.

For companies dealing with crypto payments or blockchain settlements, the key will be compliance,  understanding how to manage exposure while continuing to scale operations within the UK’s regulatory boundaries.

Final Outlook

The Bank of England’s decision to propose a stablecoin cap reflects the delicate balance regulators are trying to strike between innovation and stability. With a £20K limit for individuals and £10M for businesses, the policy underscores the UK’s intent to lead with clarity, not chaos, in the next era of digital finance.