The UK advances its crypto industry with comprehensive reforms from the Bank of England and FCA, aiming to establish a competitive digital-asset hub and clarify rules for stablecoins.
The UK is moving more decisively to bring digital assets into its financial rulebook, with the Bank of England and the Financial Conduct Authority both taking steps that industry figures say could help London compete with the European Union and the United States for crypto business.
According to the Bank of England, the latest phase of its stablecoin framework was set out on 22 June, when it published a policy statement and draft code for so-called systemic stablecoin issuers. The central bank said the regime is designed to support safe innovation, while allowing UK-issued stablecoins to develop as trusted digital money. It also lifted the maximum share issuers may hold in interest-bearing assets to 70% from 60%, and introduced a temporary £40 billion issuance guardrail for each systemic stablecoin.
The FCA has separately finalised rules for crypto firms covering capital requirements, disclosures and conduct standards. In a press release, the regulator said the framework also includes market integrity rules aimed at tackling insider trading and market manipulation. Together with the Bank of England’s approach, the measures are intended to provide greater clarity for firms operating in the sector.
Wirex chief executive Chet Shah, writing in a contributed piece reported by CoinDesk, said the UK had lagged behind because of a cautious regulatory stance, but argued the recent changes mark a stronger commitment to the industry. He said further reform is still needed, pointing to the £40 billion cap on pound-denominated systemic stablecoins. The Bank of England has said its framework will focus mainly on sterling-denominated systemic stablecoins, while non-sterling tokens could also come under the regime if their use becomes widespread in the UK.
The central bank has said it expects to finalise the code of practice by the end of 2026, with regulated stablecoins expected to operate in the UK from 2027. The FCA and the Bank of England have also issued a joint statement setting out how responsibilities will be shared once a stablecoin issuer is recognised as systemic by HM Treasury, part of an effort to make supervision more predictable as the market develops.
For the UK, the regulatory shift fits a broader bid to build a digital-asset hub. But the roll-out is still phased, and the country’s ability to draw meaningful short-term capital into the market may depend on how quickly the new rules are turned into a workable licensing regime.
- https://en.bloomingbit.io/feed/news/116061 – Please view link – unable to able to access data
- https://www.bankofengland.co.uk/news/2026/june/boe-launches-policy-statement-and-draft-rules-on-regulating-systemic-stablecoins – On 22 June 2026, the Bank of England published a policy statement and draft Code of Practice for systemic stablecoin issuers, marking a significant step in establishing the UK’s stablecoin regime. The framework aims to support safe innovation, enabling UK-issued stablecoins to develop as trusted forms of digital money. Key policy decisions include increasing the maximum share held in interest-bearing assets from 60% to 70% and introducing a temporary issuance guardrail set at £40 billion for each systemic stablecoin. The Bank intends to finalise the Code of Practice by the end of 2026, with regulated stablecoins expected to operate in the UK from 2027. ([bankofengland.co.uk](https://www.bankofengland.co.uk/news/2026/june/boe-launches-policy-statement-and-draft-rules-on-regulating-systemic-stablecoins?utm_source=openai))
- https://www.bankofengland.co.uk/paper/2026/ps/sterling-denominated-systemic-stablecoin – The Bank of England’s regulatory approach focuses primarily on sterling-denominated systemic stablecoin issuers, with provisions for non-sterling-denominated systemic stablecoins if their use becomes widespread in the UK. The approach aims to provide clarity and certainty for firms, embedding proportionality to enable viable and sustainable stablecoin business models to develop safely. The Bank’s regime will not cover stablecoins used for non-systemic purposes, such as the buying and selling of cryptoassets, which is the predominant use of stablecoins today. ([bankofengland.co.uk](https://www.bankofengland.co.uk/paper/2026/ps/sterling-denominated-systemic-stablecoin?utm_source=openai))
- https://www.fca.org.uk/news/statements/fca-and-bank-england-set-out-approach-joint-regulation-systemic-stablecoin-issuers – The Financial Conduct Authority (FCA) and the Bank of England have published a joint approach outlining how they and other relevant authorities will work together to regulate systemic stablecoin issuers in the UK. The document explains how responsibilities will be split between the authorities and how UK stablecoin issuers may transition from FCA supervision to joint regulation once recognised as systemic by HM Treasury. The approach aims to provide clarity and predictability for firms as the market develops. ([fca.org.uk](https://www.fca.org.uk/news/statements/fca-and-bank-england-set-out-approach-joint-regulation-systemic-stablecoin-issuers?utm_source=openai))
- https://www.fca.org.uk/news/press-releases/fca-sets-landmark-crypto-rules-cement-uks-place-global-hub – The FCA has set out landmark rules for firms supporting people to buy, trade, and hold crypto, introducing clear standards under a new regulatory framework. All firms must meet financial resilience requirements, including capital and stress testing. The FCA is also introducing new market integrity rules covering areas such as insider trading and market manipulation. The new framework sets out specific rules for stablecoins, a type of cryptoasset designed to maintain a stable value, helping to build trust in how they are used over time. ([fca.org.uk](https://www.fca.org.uk/news/press-releases/fca-sets-landmark-crypto-rules-cement-uks-place-global-hub?utm_source=openai))
- https://www.bankofengland.co.uk/news/2025/november/boe-launches-consultation-on-regulating-systemic-stablecoins – On 10 November 2025, the Bank of England published a consultation paper setting out its proposed regulatory regime for sterling-denominated systemic stablecoins. These stablecoins are a new type of digital money designed to maintain a stable value and could be used for retail payments and wholesale settlement in the future. The proposals aim to support innovation and build trust in this emerging form of money, ensuring that risks are effectively identified and managed to safeguard monetary and financial stability. ([bankofengland.co.uk](https://www.bankofengland.co.uk/news/2025/november/boe-launches-consultation-on-regulating-systemic-stablecoins?utm_source=openai))
- https://www.bankofengland.co.uk/paper/2026/boe-and-fcas-approach-to-joint-regulation-of-systemic-stablecoin-issuers – The Bank of England and the FCA have published a joint approach to the regulation of systemic stablecoin issuers, clarifying how their responsibilities will be split and how UK stablecoin issuers may transition from FCA supervision to joint regulation once recognised as systemic by HM Treasury. The document provides clarity on the regulatory remits of both authorities and outlines the supervisory responsibilities for systemic stablecoin issuers, aiming to ensure effective regulation and supervision of the stablecoin market. ([bankofengland.co.uk](https://www.bankofengland.co.uk/paper/2026/boe-and-fcas-approach-to-joint-regulation-of-systemic-stablecoin-issuers?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references recent developments, including the Bank of England’s stablecoin framework published on 22 June 2026 and the FCA’s finalized rules for crypto firms announced on 30 June 2026. ([kucoin.com](https://www.kucoin.com/news/flash/bank-of-england-publishes-stablecoin-rules-with-40b-cap?utm_source=openai)) However, the article was published on 12 July 2026, which is more than 7 days after these events, slightly reducing its freshness score. ([kucoin.com](https://www.kucoin.com/news/flash/bank-of-england-publishes-stablecoin-rules-with-40b-cap?utm_source=openai))
Quotes check
Score:
6
Notes:
The article includes a quote from Wirex CEO Chet Shah, stating that the UK had lagged behind due to a cautious regulatory stance but now shows a stronger commitment to the industry. ([thefintechtimes.com](https://thefintechtimes.com/bank-of-englands-stablecoin-framework-draws-praise-and-criticism/?utm_source=openai)) However, this quote cannot be independently verified through the provided sources, raising concerns about its authenticity. ([thefintechtimes.com](https://thefintechtimes.com/bank-of-englands-stablecoin-framework-draws-praise-and-criticism/?utm_source=openai))
Source reliability
Score:
7
Notes:
The article cites reputable sources such as the Bank of England and the FCA. ([kucoin.com](https://www.kucoin.com/news/flash/bank-of-england-publishes-stablecoin-rules-with-40b-cap?utm_source=openai)) However, it also references a contributed piece by Wirex CEO Chet Shah reported by CoinDesk, which may introduce potential bias. ([thefintechtimes.com](https://thefintechtimes.com/bank-of-englands-stablecoin-framework-draws-praise-and-criticism/?utm_source=openai))
Plausibility check
Score:
8
Notes:
The claims about the UK’s regulatory advancements in digital assets align with recent developments. ([kucoin.com](https://www.kucoin.com/news/flash/bank-of-england-publishes-stablecoin-rules-with-40b-cap?utm_source=openai)) However, the article’s reliance on a single, unverified quote from Chet Shah raises questions about the completeness of the information presented. ([thefintechtimes.com](https://thefintechtimes.com/bank-of-englands-stablecoin-framework-draws-praise-and-criticism/?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents recent developments in the UK’s digital asset regulation, referencing official sources and a contributed piece by Wirex CEO Chet Shah. However, the inclusion of an unverifiable quote raises concerns about the article’s credibility. ([thefintechtimes.com](https://thefintechtimes.com/bank-of-englands-stablecoin-framework-draws-praise-and-criticism/?utm_source=openai))