UK Crypto Thaw May Boost LSE Listings Like KR1’s, Easing Stablecoin Caps for Bitcoin Firms

• KR1 uplisting to LSE main market signals growing acceptance of blockchain firms in traditional finance.

• The Financial Conduct Authority now permits crypto exchange-traded products on the LSE, boosting market access.

• Bank of England plans exemptions from stablecoin caps, potentially raising corporate limits from 10 million pounds amid global competition.

Discover how UK crypto regulations are evolving in 2025 with LSE openings and stablecoin reforms. Stay ahead in digital assets—explore investment opportunities today.

What are the latest developments in UK crypto regulations?

UK crypto regulations are shifting toward a more supportive framework, with the Financial Conduct Authority enabling crypto exchange-traded products on the London Stock Exchange and the Bank of England revising stablecoin holding limits. This change aims to position the UK as a competitive hub for digital assets, attracting firms like KR1 to list publicly. These updates reflect a balance between innovation and regulatory oversight.

How is the London Stock Exchange opening to digital assets?

The London Stock Exchange (LSE) is embracing digital assets through the uplisting of KR1, a crypto staking company from the Isle of Man, from the Aquis exchange to its main market. Expected next month, this move marks KR1 as the first authentic digital asset company on the LSE, with a market capitalization of 56 million British pounds. Co-founder Keld Van Schreven described it to the Financial Times as “a starter gun for this new asset class on the LSE,” predicting more crypto firms will follow. Founded in 2014, KR1 focuses on early-stage blockchain investments and staking revenues from assets like Ether and Polkadot, having completed over 100 digital asset investments. This development underscores the UK’s warming regulatory environment, separate from mere cryptocurrency holders like Bitcoin-focused entities.

UK regulators are adopting a more lenient stance on crypto, opening the LSE to digital assets and easing proposed stablecoin limits for institutions.

KR1, a crypto staking company based on the Isle of Man, is preparing to move its listing from the small-cap Aquis exchange to the main market of the London Stock Exchange (LSE).

Co-founder Keld Van Schreven told the Financial Times that the move, expected to be completed next month, represents “a starter gun for this new asset class on the LSE,” adding that he anticipates more crypto firms will follow.

With a market capitalization of around 56 million British pounds (approximately $75 million), KR1 is the “first authentic digital asset company” to list on the LSE, distinguishing itself from other listed entities that focus mainly on holding cryptocurrencies like Bitcoin (BTC), he said.

Founded in 2014, KR1 invests in early-stage blockchain projects and earns revenue through staking assets such as Ether (ETH) and Polkadot (DOT). The company has completed over 100 digital asset investments and is “doubling down on staking,” according to Van Schreven.

Related: Companies weigh in as UK prepares to reverse crypto ETN ban

UK warms toward crypto

The planned uplisting comes as the UK’s Financial Conduct Authority (FCA) signals a more receptive stance toward crypto. The regulator recently permitted crypto exchange-traded products to trade on the LSE and plans to implement a comprehensive digital asset framework next year.

Furthermore, the Bank of England is reconsidering proposed caps on corporate holdings of stablecoins, with plans to allow exemptions for firms that require larger reserves of fiat-pegged assets.

The BoE had initially proposed caps on stablecoin holdings, 20,000 pounds (about $27,000) for individuals and 10 million pounds (around $13 million) for companies. The shift comes amid global regulatory competition, especially from the GENIUS Act in the US, which offers clearer rules for digital asset firms.

BoE reconsiders caps on stablecoin holdings. Source: GC Cooke

Related: BlackRock launches Bitcoin ETP after UK lifts trading ban

Argo Blockchain to delist from LSE

Meanwhile, Argo Blockchain will delist from the LSE as part of a sweeping restructuring that hands control of the company to its largest creditor, Growler Mining. The move ends Argo’s six-year run as one of the UK’s few publicly traded crypto mining firms.

The company will maintain its Nasdaq listing, subject to meeting compliance requirements, including a planned reverse stock split before January 2026.

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Frequently Asked Questions

What does KR1’s LSE uplisting mean for UK crypto firms?

KR1’s move to the LSE main market positions it as a pioneer for blockchain companies in traditional exchanges, potentially encouraging other crypto entities to seek public listings. With its focus on staking and investments, KR1 highlights the viability of digital asset businesses under UK oversight, fostering broader market integration.

Why is the Bank of England easing stablecoin regulations?

The Bank of England is adjusting stablecoin caps to support institutional needs for larger fiat-pegged reserves, responding to competitive pressures from frameworks like the US GENIUS Act. This aims to enhance the UK’s role in global digital finance while ensuring systemic stability through targeted exemptions.

Key Takeaways

• Regulatory thaw: The FCA’s approval of crypto ETPs on the LSE signals a pro-innovation shift in UK crypto regulations.
• Institutional access: BoE’s stablecoin exemptions could unlock higher holdings for companies, boosting adoption in payments and DeFi.
• Market shifts: While KR1 advances, Argo Blockchain’s delisting underscores challenges for mining firms, advising diversified strategies.

Conclusion

In summary, UK crypto regulations are evolving with LSE access for digital assets and relaxed stablecoin limits, as seen in KR1’s uplisting and BoE reconsiderations. These steps, informed by expert insights from figures like Keld Van Schreven and reports from the Financial Times, position the UK competitively against global peers. As the comprehensive framework rolls out next year, stakeholders should monitor developments to capitalize on emerging opportunities in blockchain and staking innovations.