The Bank of England plans to impose temporary limits on stablecoin holdings, capping individual purchases at £20,000 and business holdings at £10 million. These limits will be lifted once the financial system adapts to stablecoins. The BOE's proposals are open for consultation until February 2026.

This article discusses how the GENIUS Act in the U.S. and the MiCA regulation in Europe are redefining stablecoins by establishing clearer legal frameworks for redemption rights and reserve access. It argues that these developments could create a two-tier market, distinguishing between stablecoins with strong legal backing and those that may behave like risk assets in a crisis.

The Bank of Korea has announced its commitment to actively participate in the development of stablecoin regulations to safeguard monetary and financial stability. This initiative is part of a broader effort to create a regulatory framework addressing the risks associated with stablecoins and their potential impact on monetary policy and traditional financial markets.