The promise is now three years old. Ever since Prime Minister Rishi Sunak declared the UK’s ambition to become a “global cryptoasset hub” in 2022, the goal felt more like wishful thinking than reality. But in recent days, the gap between ambition and reality appears to be finally narrowing - driven by two major regulatory moves arriving almost in tandem.
Last month, the UK’s Financial Conduct Authority (FCA) finalized its crypto rules: guidelines on capital requirements, admissions and disclosures, through to firm conduct frameworks. Separately, the Bank of England made an even more surprising move - scrapping previously proposed stablecoin holding caps while lowering the reserve requirement issuers must hold at the central bank from 40% to 30%. Together, these actions serve as the clearest signal yet that the UK intends to genuinely build a crypto regime, rather than just talk about it.
What the Industry Once Criticized Has Now Been Eased
To understand why this feels significant, consider how restrictive the previous plans were. The Bank of England’s November 2025 proposal drew fierce backlash: individuals were capped at holding no more than 20,000 pounds in systemic sterling stablecoins, while businesses were limited to 10 million pounds. Critics argued the caps were far too conservative to allow stablecoins to be used at scale, holding back the UK’s competitiveness. The FCA’s earlier approach was also seen as overly cautious - marked by unclear rules, slow licensing, and burdensome marketing regimes. On top of that, several major financial institutions blocked customer transfers to crypto exchanges citing fraud concerns, even though many of those exchanges were regulated by the FCA.
Why the UK Is Rushing to Catch Up
The pressure stems from the fact that the world isn’t waiting around. According to the “Beyond Dollarization” report by Visa and Dune, the number of unique non-dollar stablecoin holders grew 30-fold between January 2023 and February 2026 - driven largely by real-world payments, settlements, and payroll, rather than speculation. The European Union’s MiCA framework, which kicked off with stablecoin regulations, saw monthly euro stablecoin transfer volumes surge from 270 million to 8 billion dollars, with the United States following close behind. Amid this global race, the message from London now strikes a different tone: after years of dragging its feet, the UK seems to realize that regulatory clarity is the first prerequisite to avoid being left behind. An important note: this analysis comes from within the FCA-regulated fintech sector itself, so the optimism is best taken with a grain of salt - on-the-ground execution will ultimately prove how serious these promises are.
Sourced from CoinDesk.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
