The Financial Conduct Authority's adjustments come after the Bank of England eased its stance on stablecoin ownership limits.
By Jamie Crawley|Edited by Sheldon Reback Jun 30, 2026, 10:08 a.m. 1 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on The FCA has relaxed financial constraints on the crypto sector in a new regulatory framework. (FCA)SummaryShow- The U.K.'s financial oversight authority intends to lower capital requirements for stablecoin issuers as part of its cryptocurrency regulation framework.
- The Financial Conduct Authority has announced a reduction in the required capital backing to 1% of the total value of stablecoins in circulation from the earlier 2% proposal.
- The FCA also seeks to streamline regulations for cryptocurrency exchanges.
The Financial Conduct Authority (FCA) in the U.K. has decided to lower the capital requirements for issuers of stablecoins as it releases its formal guidelines for cryptocurrency regulation.
The regulator reduced the necessary financial backing to 1% of the total value of issued stablecoins, down from the previous requirement of 2%.
The FCA stated that this adjustment "makes the prudential framework more proportionate for larger issuers while preserving the overall integrity of the system" in a new regulatory framework document released on Tuesday.
This new requirement is less stringent than the 2% requirement set forth by the European Union's Markets in Crypto Assets (MiCA) regulation.
According to the FCA, the goal is to make the regulatory framework more practical and manageable in execution, as stated in their announcement.
This decision follows the Bank of England's (BOE) reassessment of its proposal regarding limits on the value of stablecoins an individual can own, which included a withdrawal of plans for a £20,000 ($26,500) cap.
Globally, major financial markets have been establishing formal regulatory frameworks to oversee crypto assets, with stablecoins being a focal point of attention.
The FCA also aims to ease the regulatory burden for crypto exchanges. Under the revised rules, these exchanges will be required to allocate 40% of their trading capital to cover potential losses and to apply a 40% loss estimate to the value of collateral when involved in lending or trading with other entities.
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