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Bank of England Requests Additional £24 Million To Monitor The Risks Associated With Crypto

The Bank of England is seeking an extra £24 million from financial institutions and insurers to employ 100 new employees and keep track of potential risks, including those related to crypto-assets, reports The Guardian.

Bank of England

The Prudential Regulation Authority (PRA) of the Bank of England, which is in charge of controlling systemic risks in the financial industry, said it was growing its 1,341-strong workforce in response to “new policy duties,” which included creating the UK’s standards after Brexit.

The Bank, according to Sam Woods, a deputy governor and head of the PRA, is striving to stay up with “innovation and emerging risks,” such as the rise of crypto assets, which a global watchdog has warned might represent a severe threat to financial stability if regulators do nothing.

Bank of England cautions

Andrew Bailey, The Bank’s Governor, Encouraged Financial Institutions Firms To Be Cautious

Andrew Bailey, the Bank’s governor, furthermore encouraged financial institutions firms as well as banks to be “extremely cautious” while dealing with crypto assets like bitcoin until new rules are in place in December.

Woods added that they will need to enhance their capacity this year with a spending plan that allows us to employ roughly 100 more people than last year’s spending plan to deliver an enlarged role as a rule maker and a greater focus on operational resilience.

He added that the PRA needs to keep an eye on the “ongoing digitalization” of banking and finance, including the use of Machine learning and artificial intelligence, as well as other fintech advancements.

The PRA claimed that expanding its jurisdiction would necessitate boosting the annual tax for the 1,500 enterprises it regulates, as it expected to increase its annual budget by £24 million to £320.9 million, a 9% increase.

 

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