Stablecoin Rules Split: UK Softens Requirements While EU Sticks to MiCA

Here’s another clean rewrite with a slightly tighter, more market-news style:

The U.K.’s Financial Conduct Authority (FCA) has relaxed its proposed capital rules for stablecoin issuers, following the Bank of England’s decision to abandon limits on individual holdings.

Under the revised framework, issuers would be required to hold reserves equal to 1% of outstanding stablecoins, down from the earlier proposed 2%.

The FCA said the change is intended to make the regime more proportionate for larger issuers while preserving financial stability.

The updated requirement is also below the European Union’s Markets in Crypto-Assets (MiCA) standard, which remains at 2%.

The regulator said the broader aim is to streamline compliance and improve the practicality of the rules.

The move follows the Bank of England’s reversal of its planned £20,000 ($26,500) cap on stablecoin holdings for individuals.

As global regulators refine crypto frameworks, stablecoins continue to be a primary focus.

The FCA also proposed changes for crypto exchanges, including requiring firms to hold 40% of trading capital against potential losses and apply a 40% haircut to collateral used in lending and trading activities.