The Bank of England has watered down upcoming rules for cryptocurrency companies after Nigel Farage accused it of stifling growth.

The central bank has dropped plans aimed at capping the value of so-called stablecoins that can be held by individuals and businesses.

It comes after Mr Farage accused the Bank of being governed by “dinosaur bureaucrats” and said the rules would “choke off British innovation and competitiveness”.

The Bank confirmed on Monday that it had scrapped a proposal to introduce limits for stablecoins.

It had previously proposed capping ownership at £20,000 for individuals and £10m for businesses.

Instead, it said it would now cap the amount that a single issuer can release to…