Here’s a tighter, more polished rewrite with a clean news tone:
The U.K. Financial Conduct Authority’s (FCA) latest proposal comes after the Bank of England scrapped its earlier plan to cap individual stablecoin holdings.
As part of its formal crypto regulatory framework, the FCA has reduced the capital buffer required for stablecoin issuers.
Issuers would now need to hold reserves equal to 1% of the total value of outstanding stablecoins, down from the previously proposed 2%.
The regulator said the revision is designed to make the prudential regime more proportionate for larger firms while maintaining overall resilience.
The new threshold also puts the U.K. below the European Union’s Markets in Crypto-Assets (MiCA) rules, which require a 2% buffer.
According to the FCA, the broader objective is to simplify key elements of the framework and improve its practical application.
The change follows the Bank of England’s decision to abandon its proposed £20,000 ($26,500) limit on how much stablecoin an individual could hold.
Globally, regulators have been stepping up efforts to establish comprehensive crypto oversight, with stablecoins emerging as a major area of focus.
The FCA also outlined plans to streamline rules for crypto exchanges. Under the proposal, exchanges would need to set aside 40% of their trading capital to cover potential losses and apply a 40% haircut to collateral used in lending or trading with counterparties.
