The Bank of England’s proposal to introduce stablecoin limits for businesses has raised concerns among firms using, or considering the use of, cryptocurrency. As digital assets play a growing role in finance, these proposals could shape how crypto is regulated across the UK.
Originally, the Bank suggested capping individual stablecoin holdings at £10,000–£20,000, with a £10 million ceiling for businesses. However, following industry criticism, the Bank’s governor has since softened his stance, noting it would be “wrong to be against stablecoins as a matter of principle.”
Recent comments suggest the final limits may differ from the initial proposals.
What are stablecoins and why are they under scrutiny?
Stablecoins are cryptocurrencies designed to maintain a consistent value, typically pegged to a traditional currency such as the US dollar. Globally, nearly $300 billion worth of stablecoins are in circulation.
They are increasingly used for fast, low-cost payments and as a way to hold value between trades, especially for cross-border transactions.
While the aim of the proposed limits is to manage systemic risk and maintain financial stability, many argue they could restrict innovation and leave the UK behind in the development of digital finance.
Stablecoin caps: potential impact on business
If adopted, these limits could affect how businesses manage digital assets, including their treasury strategies and payment methods. Under the proposals, businesses may be restricted to holding no more than £10 million in stablecoins.
The Bank of England has outlined its position in a 2023 explainer, though it has not been updated since.
These developments sit alongside wider regulatory changes, such as HMRC’s new reporting rules coming in 2026, which are set to tighten compliance requirements for businesses dealing in digital assets.
Crypto on the balance sheet
Some businesses already hold Bitcoin as a treasury asset, seeking diversification from cash or gilts and some protection against inflation.
There’s also a reputational factor, firms embracing crypto may be viewed as innovative or forward-thinking.
However, volatility and custody risks need careful management. Under UK GAAP, Bitcoin must be recorded at cost and is treated as an intangible fixed asset.
Final thoughts
The ongoing consultation on stablecoin limits for businesses marks a significant step in the UK’s evolving digital asset landscape.
As always, preparation is key. For any business exploring or already using crypto, keeping up to date with regulatory changes, and seeking tailored advice, will be essential.