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cryptonews 2025-06-19 06:32:56

UK Wants Banks to Have Less Exposure to Crypto by Next Year – Here’s Why

The Bank of England (BOE) is considering a proposal that would restrict UK banks’ exposure to crypto by 2026. Speaking at the Risk Live Europe event in London on Wednesday, the central bank executive director, David Bailey, noted that the UK’s upcoming rules would be more on the “restrictive end.” He specified that banks would be encouraged to keep a low crypto exposure. “There are also examples where it might be more appropriate to start more towards the restrictive end of the spectrum,” he said. “The prudential treatment of banks’ exposures to cryptoassets, and specifically those with features associated with heightened price volatility and where investors could lose the entirety of their investment, is an example in this space.” UK Rules to be ‘Informed’ by Basel Committee Standards Besides, the UK is working to enact the Basel Committee on Banking Supervision’s disclosure framework for crypto exposure . This includes “standardized set of public tables and templates covering banks’ crypto exposures.” The Basel Committee originally indicated crypto disclosures to arrive by January 2025; however, it extended the deadline by another year. Further, the Basel Committee recommended that banks allow only 1% of their investments in cryptocurrencies like Bitcoin . FCA Set to Implement New Crypto Regime The UK’s Financial Conduct Authority (FCA) has been pushing to establish a clear framework for cryptoasset firms in the country. The regulator’s “ gateway regime ” is earmarked for 2026, which will act as a new authorization for crypto companies. The regulator is also looking to finalize its regulatory framework for stablecoins and crypto custody. The FCA is currently seeking public input on its stablecoin regulation plan. The restrictions on banks’ crypto exposure come at a time when European banks are increasingly involved in crypto. Though the EU watchdog, ESMA, noted that 95% of EU banks do not engage in crypto activities, banks like BBVA have gone ahead in advising wealthy customers to invest in crypto. https://twitter.com/cryptonews/status/1935216936985755992 The post UK Wants Banks to Have Less Exposure to Crypto by Next Year – Here’s Why appeared first on Cryptonews .

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