The Bank of England is increasing its focus on the risks posed by cryptocurrencies, requiring firms to report their crypto asset exposure by March 24, 2025.

This initiative seeks to enhance financial stability and inform the development of a regulatory framework for crypto activities.

The Bank’s Prudential Regulation Authority (PRA) issued the directive on December 12, mandating firms to disclose their current crypto asset holdings, future plans, and application of the Basel framework for managing crypto-related risks.

The Basel framework, introduced in 2022 by the Basel Committee on Banking Supervision, establishes global standards for banks’ exposure to digital assets.

“This will inform work across the PRA and the Bank of England on crypto assets by helping us calibrate our prudential treatment of crypto asset exposures [and] analyze the relative costs and benefits of different policy options,” the PRA stated.

Firms are also required to detail their use of permissionless blockchains, which the PRA flagged as a sig

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Author: Vismaya V