- UK’s PRA requires businesses to report crypto exposure details by March 2025.
- Data collection aims to assess financial stability and guide policy development.
- Firms must project their crypto activities through September 2029.
- Basel framework implementation details requested from participating companies.
- Special focus on permissionless blockchain risks and settlement concerns.
Bank of England’s Crypto Survey Targets UK Financial Sector
The Bank of England’s Prudential Regulation Authority (PRA) has initiated a comprehensive cryptocurrency exposure survey, requiring UK businesses to submit detailed reports by March 2025, as digital asset adoption increases across Britain’s financial sector.
Data Collection Scope
The regulatory initiative requires businesses to provide:
- Current cryptocurrency exposure levels
- Projected involvement through Q3 2029
- Implementation details of the Basel framework – international standards determining minimum capital requirements for banks
- Specific information about permissionless blockchain usage
The PRA’s documentation highlights specific concerns about permissionless blockchains, noting settlement risks and ownership verification challenges. "They 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 authority stated.
Regulatory Implications
The collected data will shape the PRA’s approach to:
- Prudential treatment of crypto exposures
- Cost-benefit analysis of policy options
- Financial stability assessments
This survey follows increasing cryptocurrency activity in the UK market, including recent developments where TikTok faced accusations of operating as an unregistered crypto exchange. The deadline for survey completion is set for March 24, 2025, giving businesses approximately 15 months to compile and submit their responses.
The initiative represents the PRA’s most extensive effort to date in measuring cryptocurrency’s impact on Britain’s financial system, as regulators worldwide strengthen their oversight of digital assets.
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