Bank of England Unveils Stablecoin Regulatory Framework, Eyes Ownership Caps
Bank of England Unveils Stablecoin Regulatory Framework, Eyes Ownership Caps
The Bank of England (BOE) has published its anticipated consultation paper detailing a proposed regulatory regime for stablecoins. Set for implementation in the second half of next year, the framework includes a discussion around potential 'temporary' caps on stablecoin ownership, reflecting the BOE's efforts to manage risks associated with digital currencies.
Bank of England Advances Stablecoin Regulation
The Bank of England (BOE) has taken a significant step towards integrating stablecoins into the traditional financial system by releasing its long-awaited consultation paper. This comprehensive document outlines the BOE's proposed regulatory framework, which is slated to become effective in the latter half of next year. A key point of discussion within the proposal is the consideration of 'temporary' caps on stablecoin ownership, indicating a cautious yet forward-looking approach to these digital assets. This move underscores a broader global trend among central banks to establish robust oversight for stablecoins, aiming to mitigate potential financial stability risks while fostering responsible innovation in the digital asset space.