UK updates digital asset rules

The Bank of England announced revisions to its regulations regarding stablecoins, retracting a previous cap on individual holdings and replacing it with an aggregate issuance limit for each stablecoin, set at a maximum of £40 billion. It also increased the proportion of supporting assets composed of short-term government debt to 70%, while maintaining 30% in interest-free deposits at the bank. These decisions come in response to concerns about the impact of strict regulations on the growth of the stablecoin market and aim to enhance confidence in the UK's payment system.

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