Bank of England hiring 100 extra staff to deal with crypto risks
The Bank of England’s Prudential Regulation Authority (PRA) has announced it is increasing staff numbers to keep track of new risks linked to crypto assets and "new policy responsibilities".
The PRA’s Business Plan for 2022/3 shows a 9% increase to its funding to combat growing risks around cryptocurrencies and other emerging technologies.
The PRA hopes to add 100 employees with digital assets know-how.
The PRA will continue to contribute to the Bank of England’s work on crypto assets, including oversight of the risks emerging from firms’ evolving levels of business and exposures in crypto assets.
HM Treasury announced plans earlier this month to prioritise regulating stablecoins that are used for payments. The PRA plans to use a slice of its regulatory budget for that purpose.
The PRA has already issued a Dear CEO letter asking banking and investment firm to report on their crypto asset exposures. The PRA will be engaging with international partners, including at the Basel Committee on Banking Supervision, to establish a common, international framework for the treatment of crypto asset exposures.
Sam Woods, a Deputy Governor and Head of the PRA, said the Bank of England was trying to keep up with “innovation and emerging risks” including the boom in crypto assets.
“In order to deliver an expanded role as a rule-maker and an increased focus on operational resilience, we will need to increase our resources this year with a budget that will allow us to employ around 100 more staff than last year’s budget,” said Woods.
The Bank of England’s Governor, Andrew Bailey, also urged banks and other financial firms in December to be “especially cautious” when dealing with crypto assets such as bitcoin until new regulations are in force.
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