UK Banking Regulator to Propose Rules on Issuing, Holding Crypto
The U.K. government recently released a consultation on regulating the industry and a potential central bank digital currency.
Feb 27, 2023 at 5:23 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/I42FRFKQPVABRFRM7P3NRCCVJY.jpg)
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The Prudential Regulation Authority (PRA), which regulates banks in the U.K., is planning to propose rules on issuing and holding digital assets, Vicky Saporta, executive director of prudential policy at the Bank of England, said in a speech Monday.
The country is trying to firm up its approach on crypto, including stablecoins and other digital settlement assets that could pose a risk to financial stability. Once the Financial Services and Markets Bill becomes law, authorities will have powers to regulate the sector. The U.K. government is currently consulting on its regulatory approach.
New standards for PRA-regulated firms will be coherent with rules for other sectors, according to a footnote accompanying the text of the speech. The Basel Committee on Banking Supervision, the banking industry's global regulator, published a standard on how banks should treat crypto exposure in December.
CORRECTION (Feb. 27 17:30 UTC): Corrects the dek to say the U.K. government released the consultation, not the banking regulator.
CORRECTION (Feb. 28 08:50 UTC): Corrects the name of Prudential Regulation Authority in opening paragraph.
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