The Bank of England’s Prudential Regulation Authority (PRA) увеличило its budget for the coming financial year. The additional resources will go toward tackling risks associated with digital assets.
According to the plan, the annual total will be £320.9 million. Compared with the previous period, the budget rose by 8.2% (£24.3 million).
The PRA is responsible for financial stability. Under the new plan, the regulator intends to mitigate ‘potential risks’, including those arising from companies’ access to digital assets.
The regulator has asked legal entities to report their cryptocurrency investment plans, issues, and how they intend to address them. The PRA also intends to cooperate with international partners, including the Basel Committee on Banking Supervision.
‘[…] work will continue to build a regulatory framework ready for technological innovations such as stablecoins,’ the document says.
Earlier, the Bank of England outlined approaches to regulating cryptocurrencies. The emphasis in the framework’s principles is on the risks to financial stability posed by the new asset class.
Back in late 2021, the Bank of England urged cooperation with international colleagues on regulating digital assets.
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