Bank of England Calls for Crypto Exposure Disclosures
Bank of England's PRA requests firms disclose crypto holdings to shape policies and safeguard financial stability
Highlights:
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Bank of England asks firms to disclose crypto exposure by March 2025 for stability monitoring.
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PRA seeks details on crypto holdings and Basel framework usage to shape future policies.
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Firms must consider future crypto plans until 2029, focusing on risk and blockchain concerns.

The Bank of England is taking steps to ensure stability in the crypto world. The Prudential Regulation Authority (PRA) has asked firms to disclose both current and future crypto exposure by March 2025.
Monitoring Crypto Risks to Guide Policy
The PRA’s request seeks vital information about how businesses are involved with crypto. Firms need to share details of their holdings and any planned acquisitions until 2029. This will give regulators a clearer view of how digital assets impact financial stability.
Businesses must also explain how they use the Basel framework. This set of global rules, introduced in 2022, helps banks manage crypto risks. The PRA wants to know how firms apply these guidelines to handle crypto safely.
This data will help regulators shape future policies. By understanding the costs and benefits of different approaches, the PRA aims to create rules that reduce risk while supporting innovation.
Risk Management and Blockchain Concerns
The PRA raised concerns about permissionless blockchains, which carry specific risks. These systems, while offering benefits, may cause problems like settlement failures. The regulator pointed out that these blockchains lack settlement finality and cannot guarantee secure ownership.
As a result, permissionless blockchains remain under review. Despite these concerns, many firms continue to invest heavily in crypto. Boyaa Interactive International and Metaplanet, for example, have shifted millions into Bitcoin.
As more businesses dive into crypto, the PRA’s request for disclosures is more important than ever. By gathering this information, the Bank of England aims to keep the financial system stable in an unpredictable digital market.
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