UK FCA Proposes Lower Capital Requirements for Stablecoins Than EU's MiCA

The UK's Financial Conduct Authority has proposed reducing capital buffer requirements for stablecoin issuers, positioning Britain's regulatory framework as less stringent than the European Union's MiCA rules. The move follows the Bank of England's earlier decision to walk back its proposed limits on how much value in stablecoins an individual could hold. Together, these regulatory shifts signal a broader effort by UK authorities to adopt a more permissive stance toward stablecoins. The developments suggest the UK is deliberately differentiating its crypto regulatory approach from that of the EU as it seeks to attract digital asset businesses post-Brexit.