Regulators finalize capital requirements and ease stablecoin reserve rules to foster institutional and consumer crypto adoption.
The UK has taken concrete steps to regulate cryptoassets, with the Financial Conduct Authority finalizing rules on capital requirements, admissions, and disclosures for firms. The Bank of England also relaxed stablecoin regulations, reducing central bank reserve requirements from 40% to 30% and scrapping proposed limits on fiat-pegged stablecoin holdings.
These moves follow years of delays since the UK first outlined ambitions to become a global crypto hub in 2022. Previous efforts had stalled, leaving the UK behind peers in establishing a clear regulatory framework. The latest actions target both consumer protection and institutional participation.
The changes signal a shift toward a more competitive crypto regime, aiming to attract firms and investment while balancing oversight. No immediate market reaction was reported, but the rules could ease entry for crypto businesses in the UK.