New cryptocurrency rules to be proposed by the UK regulator
Recently, the U.K. government released a consultation on regulating the industry and introducing a central bank digital currency.
Vicky Saporta, executive director of prudential policy at the Bank of England, said in a speech Monday that the Prudential Regulatory Authority (PRA) plans to propose rules on issuing and holding digital assets.
The country is trying to firm up its approach to crypto, including stablecoins and other digital settlement assets that could pose a risk to financial stability. The U.K. government is consulting on its regulatory approach to the Financial Services and Markets Bill, which will allow authorities to regulate the sector once it becomes law.
A footnote accompanying the speech says that new standards for PRA-regulated firms will be coherent with those for other sectors. A standard on how banks should handle crypto exposure was published by the Basel Committee on Banking Supervision, the global regulator for the banking industry.