The banking regulator of the UK, the Prudential Regulation Authority, would prescribe new directions under Basel III and the FSM bill of the UK.
The banking regulator of the United Kingdom, the Prudential Regulation Authority (PRA), would be prescribing new rules for issuing and holding digital assets under the overview of the Basel III rules and the Financial Services and Markets (FSM) bill, which is currently under discussion at the UK parliament. The move was disclosed by the Bank of England’s (BOE) Executive Director Vicky Saporta.
The Financial Services and Markets bill is also expected to give a new look to the Prudential Regulation Authority, which will take new responsibilities and help grow the international economic growth of the UK. According to Saporta, the Prudential Regulation Authority would help the UK use its full potential as a global financial center, make the UK a business hub, and also make regulations according to the UK’s needs and conditions.
The BOE and the PRA are currently devising new regulatory rules for the UK, breaking free from the rules of the European Union. “I also believe that it is normally easier for internationally active firms to follow one global rulebook instead of having to meet the expense of adapting to a patchwork of local standards,” said Saporta, referring to the new regulatory framework to follow the Basel III standards.
The FSM bill would also extend the rules of the Bank of England to stablecoins, while banks would be needed to follow new rules under the PRA, which would include limiting exposure to cryptos only to 1% of their capital along with a 1250% risk premium.