As the adoption and popularity of Bitcoin (BTC) and cryptocurrencies continues to grow, the UK has not remained indifferent.
At this point, the Bank of England (BoE) took action to investigate the risks of cryptocurrencies.
The Bank of England, through its financial sector regulator, the Prudential Regulation Authority (PRA), has requested companies to report on the risks of cryptocurrencies.
The Bank of England's regulatory arm has asked companies to submit detailed reports on their cryptocurrency transactions by March 2025 so it can monitor stability and shape policy.
The regulator is also requiring companies to detail their future plans for cryptocurrencies, and specifically their use of permissionless blockchain, by September 2029.
The aim of the analyses to be conducted according to the Basel framework is to determine the effects of cryptocurrency markets on financial stability. This framework, which was put into effect by the Basel Committee on Banking Supervision in December 2022, determines the capital adequacy and risk management standards that banks must comply with in crypto asset investments.
*This is not investment advice.
