Bank of England Demands Companies to Disclose Their Crypto Exposure

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The Prudential Regulation Authority (PRA), the regulatory arm of the Bank of England, has recently issued a directive that requires businesses to disclose their current and anticipated exposure to crypto assets by March 2025.

This measure is aimed at promoting financial stability and shaping the central bank’s approach to regulating the rapidly expanding sector.

In order to comply with this directive, firms are asked to report their existing and projected future cryptoasset exposures, and to explain how they are adhering to the Basel framework, which sets out regulatory standards for managing capital and risk in relation to crypto exposure.

The central bank plans to use this information to monitor the impact of crypto assets on financial stability and to evaluate different policy options.