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The UK selects frontrunners for its digital currency initiative as Coinbase’s CEO expresses concerns.
In conjunction with the FCA’s announcement regarding its stablecoin trial, Coinbase’s Brian Armstrong criticized the regulatory framework in the U.K., asserting that it jeopardizes the region’s global leadership in the cryptocurrency sector.
The U.K. has ambitions to be a global center for cryptocurrency, yet the timeline for regulatory implementation appears to conflict with these goals, according to industry experts. Photo by Sandy Ravaloniaina on Unsplash/Modified by Coindesk)
What to know:
- The U.K. Financial Conduct Authority has chosen Revolut, Monee Financial Technologies, ReStabilise, and VVTX to pilot stablecoin issuance in its Regulatory Sandbox starting in early 2026.
- The sandbox trials will investigate stablecoin applications in payments, wholesale settlement, and cryptocurrency trading, with outcomes influencing the final U.K. stablecoin regulations anticipated later in 2026.
- Industry leaders, including Coinbase CEO Brian Armstrong, caution that suggested Bank of England limits on stablecoin holdings and a sluggish regulatory timeline could hinder the U.K.’s goal of being a global digital asset center.
The U.K.’s Financial Conduct Authority (FCA) has selected Revolut, Monee Financial Technologies, ReStabilise, and VVTX to explore stablecoin issuance within its Regulatory Sandbox as regulators advance towards a comprehensive rulebook.
The FCA noted that the selected participants will trial stablecoin products under actual market conditions, with necessary protections in place. The regulator aims to concentrate on issuance and assess use cases that encompass payments, wholesale settlement, and cryptocurrency trading. Testing is slated to start in the first quarter of 2026, and the FCA stated that the findings will contribute to the final stablecoin regulations expected later in 2026.
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“We are assisting U.K. stablecoin issuers to ensure they can be relied upon for payments, settlement, and trading,” stated Matthew Long, director of payments and digital assets at the FCA. “This will benefit consumers and financial transactions and contribute to the FCA’s strategy and the Government’s National Payments Vision.”
Industry pushes back
Nevertheless, industry representatives have expressed opposition to the Bank of England’s (BoE) proposed stablecoin limits, arguing that they stifle innovation and hinder the U.K. from achieving its goal of becoming a global hub.
The BoE released a document on November 10, 2025, detailing stablecoin limits ranging from £5,000 to £20,000 for individuals and £1 million to £10 million for businesses. Armstrong urged U.K. users to petition Parliament for a reassessment of these limits. The petition has garnered 81,909 out of the 100,000 needed signatures.
“Stablecoin regulations in the U.K. are nearing finalization, and there is a risk that they will hinder the U.K. from remaining competitive on a global scale in the digital economy,” Brian Armstrong, CEO and co-founder of Coinbase, posted on X on Tuesday. He referenced a Bank of England proposal to impose limits on stablecoin holdings.
The government has consistently committed to establishing London as a hub for global digital asset activities. However, comprehensive legislation regulating stablecoins and broader cryptocurrency activities is expected to be sanctioned by Parliament only later this year and will not take effect until 2027.
The regulatory timeline stands in contrast to the U.K.’s objective of staying globally competitive within the sector, Andrew MacKenzie, CEO of sterling stablecoin developer Agant, commented to CoinDesk in a recent interview at Consensus Hong Kong. He expressed concern that the pace of rule introduction is inadequate to support the aspirations of a global crypto hub.
"The U.K. has a rich history as a financial center," noted Armstrong. "Fostering and supporting innovation, particularly when other nations are advancing rapidly, is crucial for maintaining that status.”
