Woofun AI reports that the UK Financial Conduct Authority has set the minimum capital requirement for stablecoin issuers at 1% of the total issued amount, a reduction from the previously proposed 2%. This threshold differs from the European Union’s Markets in Crypto-Assets regulation, which mandates a 2% capital requirement effective July 1.

The FCA simultaneously introduced prudential standards for crypto exchanges, requiring firms to hold 40% of trading capital as reserves against potential losses. A 40% loss rate will also be applied to collateral values used in lending and trading activities. These measures aim to enhance platform resilience and mitigate systemic risk during market volatility.