The British regulator increased the budget by £24 million due to the risks associated with cryptocurrenciesLivia Green
Prudential Regulation Authority (PRA) of the Bank of England increased budget for the coming financial year. Additional funds will be used to combat the risks associated with digital assets.
According to the plan, the total amount for the year will be £320.9m. Compared to the previous period, the budget increased by 8.2% (£24.3m).
PRA is responsible for financial security. As part of the new plan, the regulator is going to mitigate “potential risks”, including those arising from companies’ access to digital assets.
The management asked legal entities to report on investment plans with cryptocurrencies, problems and ways to solve them. PRA also intends to cooperate with international partners, including the Basel Committee on Banking Supervision.
“[…] work will continue to create a regulatory framework that is ready for technological innovations such as stablecoins,” the document says.
Formerly Bank of England revealed approaches to the regulation of cryptocurrencies. The focus of the framework is on the financial stability risks posed by the new asset class.
Recall that at the end of 2021 in the British Central Bank called for cooperation with international colleagues on the regulation of digital assets.