Aave founder: UK stablecoin rules could drive issuers overseas

Stani Kulechov, founder of the crypto lending protocol Aave (AAVE), argued that current UK stablecoin regulations make it difficult for UK-based issuers to operate and could ultimately drive them overseas. While he praised the Bank of England's (BoE) move to abolish the £20,000 per person holding limit for stablecoins, he pointed out that the rule requiring 30% of reserves to be deposited in a non-interest-bearing central bank account remains in place. Kulechov explained that if 30% of reserves cannot generate returns, it undermines the economic viability of issuing stablecoins, effectively having the same impact as a tax on issuers.