Bank of England Demands Crypto Exposure Disclosures by March 2025

The Bank of England is giving businesses until March 2025 to report their exposure to cryptocurrency assets.

This move, announced by the bank’s Prudential Regulation Authority (PRA), aims to collect detailed information from companies about their current and future dealings with digital assets.

The collected data will help the Bank of England and PRA refine their approach to crypto assets, shaping policies to assess the risks and rewards associated with them. The data will also allow regulators to monitor the financial stability impact of cryptocurrencies.

Companies are required to disclose various aspects of their crypto activities, including their business involvement with digital assets, revenue generated from these activities, and risk management practices. Additionally, they must outline how they track their crypto holdings, identify significant risks, and explain how they plan to address them.

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According to the PRA’s guidelines, any decision to engage with crypto assets must align with the company’s overall risk strategy and approval from senior management.

This directive follows the PRA’s previous framework issued in 2022, which acknowledged that firms still cannot fully eliminate the risks associated with permissionless blockchain networks.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.