UK regulators’ decision to ease their planned crypto rules has been welcomed by the digital assets industry as a sign the technology is being taken seriously, even as tight controls remain in place regarding the potential impact on the banking system.

The Bank of England said last Monday that it would allow UK systemic stablecoin issuers to hold more interest-earning capital, while the Financial Conduct Authority announced this week watered-down capital and disclosure requirements for crypto companies.

These announcements have been welcomed by the crypto industry, but the traditional finance sector has been more critical of the changes.

The BoE’s proposal for systemic stablecoin regulation replaced proposed ownership limits on UK…