Gate News bot news, according to Cryptonews, the UK Central Bank (BOE) is considering a proposal that would limit UK banks' investment exposure to Crypto Assets before 2026.
David Bailey, Executive Director of the Bank of England, stated at the Risk Live Europe event held in London on Wednesday that the upcoming regulations in the UK will be more "restrictive". He specifically noted that banks will be encouraged to maintain lower risks in crypto assets investments.
"There are also some examples that suggest it may be more appropriate to approach from a restrictive perspective," he said. "Prudently handling banks' investments in Crypto Assets, especially those with high price volatility where investors may lose their entire investment, is one such example."
In addition, the UK is working to establish a risk disclosure framework for crypto assets by the Basel Committee on Banking Supervision. This framework includes "a set of standardized public forms and templates covering banks' exposure to crypto assets."
The Basel Committee initially stated that the risk disclosure for crypto assets would be completed by January 2025; however, the committee has extended the deadline by another year.
In addition, the Basel Committee recommends that banks only allow 1% of their investments to be used for Bitcoin and other crypto assets.
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The Bank of England is considering requiring banks to reduce their exposure to Crypto Assets before 2026.
Gate News bot news, according to Cryptonews, the UK Central Bank (BOE) is considering a proposal that would limit UK banks' investment exposure to Crypto Assets before 2026.
David Bailey, Executive Director of the Bank of England, stated at the Risk Live Europe event held in London on Wednesday that the upcoming regulations in the UK will be more "restrictive". He specifically noted that banks will be encouraged to maintain lower risks in crypto assets investments.
"There are also some examples that suggest it may be more appropriate to approach from a restrictive perspective," he said. "Prudently handling banks' investments in Crypto Assets, especially those with high price volatility where investors may lose their entire investment, is one such example."
In addition, the UK is working to establish a risk disclosure framework for crypto assets by the Basel Committee on Banking Supervision. This framework includes "a set of standardized public forms and templates covering banks' exposure to crypto assets."
The Basel Committee initially stated that the risk disclosure for crypto assets would be completed by January 2025; however, the committee has extended the deadline by another year.
In addition, the Basel Committee recommends that banks only allow 1% of their investments to be used for Bitcoin and other crypto assets.