The UK Financial Conduct Authority (FCA) has suggested lowering the capital buffer for stablecoin issuers from 2% to 1%, making its rules more flexible than the EU’s MiCA regulations. This is part of a bigger plan to make the UK more practical and competitive for the crypto industry while keeping financial stability. The FCA also introduced simpler rules for crypto exchanges, showing the UK’s aim to attract digital asset businesses.
With the new proposal, stablecoin issuers would need to hold capital equal to 1% of the total value of their stablecoins, which is half of what was first suggested. The FCA says this change makes the rules fairer, especially for bigger issuers, without making the system less stable.
The move also puts the UK below the 2% capital requirement imposed under the European Union’s Markets in Crypto-Assets (MiCA) regulation, potentially giving firms another reason to consider operating in Britain.
The revised framework follows another significant policy shift by the Bank of England, which recently dropped plans to cap individual stablecoin holdings at £20,000. Together, the decisions suggest UK regulators are seeking a balanced approach that encourages innovation while addressing financial risks.
The FCA also suggested new rules for crypto exchanges. Trading platforms would have to hold capital equal to 40% of their trading exposure to cover possible losses. They would also need to apply a 40% reduction to collateral used in lending and trading to better match market risks.
Governments worldwide are working fast to set clearer crypto rules as digital assets become a bigger part of mainstream finance. Stablecoins are a main focus because they are playing a larger role in payments, settlements, and tokenized markets.
If these proposals are accepted, the UK could become more attractive as a global crypto centre, offering companies rules that are seen as more practical than in some other places. Still, firms will have to meet strict standards for operations and risk management before getting approval.
Britain’s financial regulator said on Tuesday it would reduce its planned capital requirements for stablecoin issuers after industry pushback, as it unveiled regulations to bring the cryptoasset sector fully within its remit for the first time. https://t.co/krxk1hMUGr
— Reuters Legal (@ReutersLegal) June 29, 2026
Source: fca.org.uk
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