The Bank of England (BoE) has proposed new, more flexible rules for stablecoin issuers, allowing them to invest up to 60% of the assets backing their tokens in government debt. The draft marks a softer regulatory approach to the sector compared to earlier plans. Meanwhile, Brazil’s central bank has taken the opposite direction – tightening oversight of crypto markets with new rules designed to curb money laundering and terrorism financing.

The BoE’s proposal would adjust the “investment conduct” of stablecoin issuers, easing restrictions that had drawn criticism from the industry. The central bank’s 2023 draft had suggested that issuers hold all backing assets in non-interest-bearing accounts at the BoE – a move many said would block the sector’s growth in the UK.

Under the new proposal, only stablecoins widely used for payments would fall under direct supervision by the BoE. The regulator also introduced a temporary framework for issuers currently overseen by the Financial Conduct Authority, letting them initially invest up to 95% of backing assets.

Despite the softer tone, the BoE maintains plans to cap the amount of stablecoins that individuals and businesses can hold – limits of £20,000 ($26,800) for individuals and £10 million for companies. Large firms such as supermarkets or trading platforms could apply for exemptions. These limits, the BoE said, are temporary and would be lifted once financial stability concerns subside.

“Today’s proposals mark a pivotal step towards implementing the UK’s stablecoin regime next year. We’ve listened carefully to feedback and amended our approach,” said Sarah Breeden, BoE deputy governor for financial stability.

Two central banks, two opposite directions

In contrast, Banco Central do Brasil has issued long-awaited regulations for virtual-asset trading. The new rules extend existing anti-money-laundering and anti-terror-financing laws to virtual-asset service providers.

Although Brazil approved a crypto legal framework in 2022, its enforcement depended on further regulation from the central bank. Following four public consultations, the new rules will take effect in February 2025.

Brazilian central bank officials have voiced growing concern over the spread of stablecoins pegged to real-world assets such as the U.S. dollar, warning they are often linked to illicit activities. “New rules will reduce the scope for scams, fraud, and the use of virtual-asset markets for money laundering,” said Gilneu Vivan, the central bank’s director of regulation.

According to the central bank, the framework will now govern authorization processes for foreign-exchange and securities brokers, distributors, and virtual-asset service providers.

Sources:

https://www.reuters.com/sustainability/boards-policy-regulation/bank-england-proposes-new-rules-stablecoins-2025-11-10/

https://www.reuters.com/world/americas/brazil-central-bank-tightens-rules-virtual-assets-cryptocurrency-2025-11-10/