One of England’s oldest central banks is giving companies until March 2025 to disclose their exposure to digital assets.
In a new announcement, The Bank of England says the Prudential Regulation Authority (PRA) – the UK financial regulator – is looking to collect data on companies’ current and future exposure to crypto assets.
“This [data] will inform the PRA and Bank of England’s work on crypto assets by helping us calibrate our prudential treatment of exposure to crypto assets, analyze the relative costs and benefits of different policy options and provide an updated picture providing companies’ current and target crypto assets. related business activities as a basis for monitoring the impact on the financial stability of these assets.”
Some of the disclosure requirements include any business related to digital assets and how the bank benefits from them, the bank’s risk management policies regarding crypto, an overview of how the bank reports its crypto assets, and the key crypto-related risks that the companies are running. are exposed and how they want to manage them, according to the PRA questionnaire.
“The decision to hold crypto assets (whether under trading or banking books) and to provide services to crypto asset operators must be fully consistent with the bank’s risk appetite and strategic objectives as established and approved by the board, as well as with senior management’s assessment of the bank’s risk management capabilities.”
According to the PRA’s second framework for crypto assets, which was released in 2022, companies still cannot fully mitigate the risks of using permissionless blockchains.
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