UK Eases Digital-Asset Rules as Global Hub Strategy Gains Momentum

The U.K.'s financial regulator and central bank have moved in quick succession to ease digital-asset rules, adding momentum to the country's strategy of becoming a global digital-asset hub.

CoinDesk reported on July 12 that Wirex Chief Executive Officer Chet Shah wrote in a contributed article that recent regulatory changes by the Financial Conduct Authority and the Bank of England signal the U.K.'s intent to foster the digital-asset industry.

The FCA last month finalized rules covering capital requirements, disclosures and conduct standards for digital-asset firms. The Bank of England also relaxed its approach by scrapping plans to introduce holding caps for stablecoins, which are digital assets pegged to fiat currencies, and by lowering the required central-bank reserve ratio for issuers to 30% from 40%.

Shah wrote that the U.K. had fallen behind in the global digital-asset market because of its conservative regulatory stance. The latest measures, he said, lay the groundwork for a competitive framework alongside the European Union's Markets in Crypto-Assets regulation, or MiCA, and the U.S. GENIUS Act.

He added that further changes are needed because the circulation cap for systemically important pound-denominated stablecoins remains set at 40 billion pounds. The U.K. plans to make a new digital-asset licensing regime mandatory from October 2027.