UK Central Bank Pushes for Regulation Limiting Banks' Virtual Asset Holdings, Aiming for Implementation in 2026
Suehyeon Lee
Summary
- The Bank of England has announced plans to promote regulations that will limit banks' holdings of virtual assets.
- The regulation aims to take effect in 2026, and it was stated that banks will be limited to holding no more than 1% of their total assets in virtual assets such as Bitcoin.
- This regulation will focus on preventing financial stability risks with reference to the disclosure framework of the Basel Committee.
The Bank of England, the central bank of the United Kingdom, has announced plans to promote regulations that will limit banks' holdings of virtual assets (cryptocurrencies) by next year.
According to Odaily on the 19th (local time), David Bailey, Executive Director of Prudential Policy at the Bank of England, said, "In order to prevent financial stability risks, we plan to introduce new regulations to limit banks' holdings of virtual assets by 2026."
This regulation is expected to be designed with reference to the disclosure framework established by the Basel Committee, and it recommends that banks should be limited to holding no more than 1% of their total assets in virtual assets such as Bitcoin (BTC).
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
