The Financial Times (FOOT) on Monday reported that cryptocurrency groups are urging the Bank of England (BOE) Discard proposals that limit the amount of established that people and companies can possess.
The groups warned that the rules would leave the United Kingdom with a stricter supervision than the United States or the European Union. (EU).
According to the FT, BOE officials plan to impose limits of 10,000 British pounds at 20,000 British pounds ($ 13,600– $ 27,200) For individuals and about 10 million British pounds ($ 13.6 million) For companies in all systemic stable, defined as tokens already widely used for payments in the United Kingdom or are expected to be in the future.
The Central Bank has argued that the restrictions are necessary to avoid the exits of banks of banks that could weaken the provision of credit and financial stability.
The FT quoted Sasha Mills, the executive director of the BOE for the infrastructure of the financial market, saying that the limits would mitigate the risks of sudden withdrawals of deposits and the scale of new systemic payment systems.
However, industry executives told FT that the plan is not working.
Tom Duff Gordon, Vice President of International Coinbase Policy, said that “imposing limits on Stablecoins is bad for the savers of the United Kingdom, bad for the city and bad for the sterling pound,” and added that no other jurisdiction has imposed such limits.
Simon Jennings, of the Cryptoasset Business Council of the United Kingdom, said the application would be almost impossible without new systems such as digital ID. Riccardo Tordera-Decchi of the Association of Payments told the FT that the limits “make no sense” because there are no cash limits or bank accounts.
The United States promulgated the genius law in July, which establishes a federal framework for the Stablecoins payment. The law establishes the standards of licenses, reservations and redemption for emitters, without limits of individual holdings. The European Union has also advanced with its markets in the regulation of cryptocurrencies. (Mica)which is now completely in force throughout the block.
The specific rules of Stablecoin for tokens with references of assets and electronic money entered into force on June 30, 2024, followed by broader provisions for cryptographic assets and service providers in December 30, 2024. Like the United States approach, Mica does not limit holdings, but focuses on reserves, governance and supervision of national regulators.
