BoE to Propose Rules on Banks Crypto Direct Exposure in 2026
The Bank of England plans to introduce new propositions on banks’ exposure to crypto by 2026 to secure monetary stability, a crucial official said Wednesday. The U.K. is aiming to create rules that are more on the limiting side, stated David Bailey, the executive director of prudential policy at the Bank of England, in a speech at Threat Live Europe in London. Bailey recommended the country is likely to motivate banks to have a low exposure to crypto. ‘There are also examples where it may be more appropriate to start more towards the limiting end of the spectrum, while evidence is gathered to see if standards can be relaxed in time,’ Bailey said. ‘The prudential treatment of banks’ direct exposures to cryptoassets, and particularly those with features connected with increased cost volatility and where investors might lose the whole of their financial investment, is an example in this area.’ The country is looking for to implement the Basel Committee on Banking Guidance’s disclosure structure for banks’ exposure to crypto. This structure needs to be put in place by the start of 2026 to help countries evaluate threats, the committee stated. The Committee also proposed rules that banks must restrict direct exposure to crypto like bitcoin to 1%. The U.K.’s plans will be ‘notified’ by the standards established by the Basel Committee, Bailey said. Countries have actually been wanting to ensure they can keep financial stability regardless of crypto volatility by keeping an eye on how interlinked banks are to crypto, especially following the 2023 collapses of Silicon Valley Bank and Silvergate Bank which both had crypto clients. The U.K.’s prudential crypto guidelines will come at a time where the country’s other monetary regulator– the Financial Conduct Authority– is set to carry out a brand-new routine for crypto. Find out more: UK Regulator Means to Start Authorizing Crypto Firms in 2026 …
