{"id":43237,"date":"2024-12-13T12:19:28","date_gmt":"2024-12-13T12:19:28","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bank-of-england-seeks-crypto-exposure-reports-for-future-policy-development\/"},"modified":"2024-12-13T12:19:28","modified_gmt":"2024-12-13T12:19:28","slug":"bank-of-england-seeks-crypto-exposure-reports-for-future-policy-development","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bank-of-england-seeks-crypto-exposure-reports-for-future-policy-development\/","title":{"rendered":"Bank of England Seeks Crypto Exposure Reports for Future Policy Development"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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The Bank of England\u2019s regulatory body, the Prudential Regulation Authority (PRA), has urged businesses to submit thorough reports on their cryptocurrency operations. The PRA asked companies to report their present and projected exposures to cryptoassets by March 2024 in a statement released on December 12. The goal of this endeavor is to influence future policy and strengthen financial stability.<\/p>\n

The PRA underlined how crucial it is to comprehend how businesses use cryptocurrency in light of the Basel framework, a collection of international guidelines for banking risk and capital management. These rules, which were first proposed by the Basel Committee on Banking Supervision in December 2022, aid in controlling banks\u2019 exposure to cryptoassets.<\/p>\n

\u201cThis will inform work across the PRA and the Bank of England on cryptoassets by helping us calibrate our prudential treatment of cryptoasset exposures, [and] analyze the relative costs and benefits of different policy options,\u201d<\/em> stated the PRA.<\/p>\n

The requested disclosures will also serve as a foundation to assess the financial stability risks associated with crypto. Businesses are expected to outline activities planned through September 2029, offering a long-term view of their involvement.<\/p>\n

Key Areas of Focus<\/strong><\/h2>\n

The PRA\u2019s questionnaire highlights several critical topics, including the use of permissionless blockchains and the application of the Basel framework. It raises concerns about the risks of permissionless systems, such as settlement failure, lack of guaranteed settlement finality, and the disconnect between ownership and control of assets.<\/p>\n

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\u201cWhile there are benefits that these new types of ledgers can bring, they also pose risks such as lack of settlement finality, settlement failure, and no guaranteed link between the intended owner of the asset and the entity that may have control of the authentication, validation mechanism,\u201d<\/em> the PRA explained.<\/p>\n

The regulator acknowledged that risks linked to permissionless blockchains remain difficult to mitigate fully but confirmed it would continue to review this classification.<\/p>\n

With these measures, the Bank of England aims to enhance its understanding of the rapidly evolving crypto landscape while ensuring robust oversight and policy development.<\/p>\n

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Source link <\/a>
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(Originally posted on : Crypto News – iGaming.org ) The Bank of England\u2019s regulatory body, the Prudential Regulation Authority (PRA), has urged businesses to submit thorough reports on their cryptocurrency operations. The PRA asked companies to report their present and projected exposures to cryptoassets by March 2024 in a statement released on December 12. The […]<\/p>\n","protected":false},"author":35,"featured_media":43238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43237"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=43237"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43237\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/43238"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=43237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=43237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=43237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}