The U.K.'s Financial Conduct Authority has formally cut the capital requirement for stablecoin issuers. The new rule mandates issuers set aside just 1% of their stablecoins' total value, down from a previously proposed 2%.
This move positions the U.K. as a more lenient jurisdiction than the European Union. The EU's MiCA regulation requires a 2% capital buffer, creating a clear regulatory divergence.
The FCA stated the change makes the framework more proportionate for large issuers while maintaining overall robustness. The regulator also aims to simplify rules for crypto exchanges.
This follows the Bank of England's recent decision to abandon a proposed cap on individual stablecoin holdings. The combined actions signal the U.K.'s aggressive push to cement its status as a leading global digital asset hub.