The Bank of England is increasing its budget by around £24.3m as it aims to combat risks associated with crypto assets. In that context, the Prudential Regulation Authority which mitigates financial risks in the banking and insurance industries has stated that it will increase its oversight of cryptocurrency in 2022.
In a business plan that was published on April 20, 2022, the regulator confirmed that its yearly budget will be expanded by 8% to £321m as part of its plans to grow its active workforce to 1,440. The deputy governor and head of the Prudential Regulation Authority, Sam Woods, stated:
“We are committed to keeping pace with innovation and emerging risks, including the ongoing digitalization of financial services and the growth of crypto assets, the increasing use of artificial intelligence and machine learning, and developments in FinTech.”
The regulator will need companies to report their crypto-asset exposures and all plans and will certainly engage with international partners, like the Basel Committee on Banking Supervision, to create crypto exposure rules for all financial institutions.
The PRA stated that it wants to keep pace with innovation in the financial system like the use of crypto assets and develop a regulatory infrastructure that is ready for technical innovations, including stablecoins.
These comments come after the United Kingdom government explained its plans to transform Britain into a ‘global hub’ for digital assets.