The Prudential Regulation Authority (PRA) has requested companies within the UK to reveal present and future crypto exposures by March 2025, with a purpose to assess monetary stability and set coverage.
The Financial institution of England’s regulatory division issued the request on Friday, amid a rising variety of UK companies embracing crypto. The PRA has additionally requested companies to elucidate how they use the Basel framework, which units requirements and minimums for financial institution capital necessities.
“This 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,” the PRA stated.
Moreover, the PRA requests data on companies’ use of permissionless blockchains. Within the questionnaire that they’ve been requested to finish, the PRA highlighted the dangers of those ledgers.
“…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,” the doc stated.
UK companies collaborating within the questionnaire should think about future crypto exposures as much as September 30, 2029. Companies have till 24 March, 2025 to reply.