The Bank of England, one of the oldest central banks in England, has set a deadline for companies to disclose their exposure to digital assets by March 2025. This move comes as the Prudential Regulation Authority (PRA), the UK’s financial regulator, aims to gather data on firms’ current and future involvement with crypto assets.
According to the announcement, the data collected will help the PRA and the Bank of England calibrate their prudential treatment of crypto asset exposures, analyze the costs and benefits of different policy options, and monitor the financial stability implications of these assets. The disclosure requirements include details on any business activities related to digital assets, how the bank profits from them, risk management policies towards crypto, reporting practices, and plans to manage crypto-related risks.
The PRA emphasizes that any decision to hold crypto assets or provide services to crypto asset operators must align with the bank’s risk appetite and strategic objectives approved by the board. The second framework for crypto assets released in 2022 highlights that firms still face challenges in mitigating risks associated with permissionless blockchains.
As the deadline approaches, companies are urged to ensure their compliance with the disclosure requirements set by the Bank of England. Stay informed about the latest developments in the crypto industry by subscribing to email alerts and following The Daily Hodl on social media platforms. Join the conversation and stay updated on price action and market trends to make informed decisions about your crypto investments.
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Incorporating the latest guidelines and regulations from the Bank of England, companies are advised to act swiftly to comply with the new disclosure requirements regarding their exposure to digital assets. By staying informed and proactive, firms can navigate the evolving crypto landscape and ensure their operations align with regulatory standards.