The U.K.'s central bank said on Monday it is proposing "temporary" limits of 20,000 pounds ($26,300) per coin for individuals and 10 million pounds for businesses.
BOE Deputy Governor Sarah Breeden tied the need to impose caps on stablecoin holdings to the U.K.'s mortgage market, which relies on commercial bank lending.
The BoE will grant waivers to some businesses like crypto exchanges that need to hold large amounts of the tokens.
Industry leaders told the Financial Times the plan would be hard to enforce, risk driving business abroad and mark the U.K. as tougher than the U.S. or the EU.
Bank of England Governor Andrew Bailey urged caution as the U.S. pushes pro-crypto policies, highlighting risks to financial stability and the nature of money.
The G20 tasked the FSB with coordinating the delivery of a regulatory framework for crypto-assets.
The New York regulator’s Transatlantic Regulatory Exchange program would allow the NYDFS to exchange senior staff experienced in digital assets with those at the Bank of England.
The UK’s central bank wants to monitor the stability of crypto and set future policy; it has asked local firms to disclose their current and future crypto plans.
The regulatory sandbox aims to strengthen the United Kingdom’s position as a global financial hub.
The DSS will last five years and could lead to a new regulatory regime for securities settlement.