UK regulator lowers stablecoin issuer capital requirement to 1%

The UK's Financial Conduct Authority (FCA) has lowered the capital requirement for stablecoin issuers to 1% of the issued amount, down from 2%, as part of a new crypto regulatory framework, CoinDesk reported. This contrasts with the 2% requirement under the European Union's Markets in Crypto-Assets (MiCA) regulation, which takes effect on July 1. The FCA also mandated that crypto exchanges must hold 40% of their trading capital as reserves against potential losses and apply a 40% loss rate to the value of collateral used in lending and trading.