UK cryptocurrency companies have expressed concerns over a proposal by the Bank of England that could prohibit unhosted wallets for stablecoin holdings within the UK. According to NS3.AI, Benoit Marzouk from tGBP and Joey Garcia from Xapo Bank have voiced that such measures could undermine peer-to-peer transfers and negatively impact the UK's competitive edge in the crypto market. Garcia emphasized that any final decision would require formal consultation, industry feedback, and rulemaking under the current regulatory framework.