UK stablecoin‑ownership caps proposed by the Bank of England

Headline: “Crypto groups hit out at BoE plan to limit stablecoin ownership”
Published: October (recent) Financial Times
Key points:

BoE proposes capping individual stablecoin holdings at £10,000‑£20,000 and business holdings at £10 million, citing risks around financial stability and bank deposit flight. Financial Times
Crypto industry groups argue the cap is impractical, costly to enforce, and would discourage innovation — possibly curbing the UK’s competitiveness. Financial Times
The stablecoin market is currently ~$288 billion and projected to hit $1.2 trillion by 2028. Financial Times
Why it matters:
This is a regulatory flashpoint: balancing between innovation (blockchain, stablecoins) and systemic risk (payments, banking system).
How the UK handles this may set precedent for other jurisdictions—either as a strict model or a cautionary tale.
For stablecoin issuers and users: the rules could impact holding limits, KYC/AML mechanisms, and business models.
What to watch:
Final version of regulation: whether the caps remain, are adjusted, or replaced by alternative controls.
How stablecoin issuers adapt: will they restrict UK users, or build workarounds?
Globally: how other countries coordinate or diverge in stablecoin policy, perhaps leading to regulatory arbitrage.