Bank of England (BOE) plans to introduce more restrictive rules for banks’ exposure to digital assets in 2026 to protect Economic stabilityaccording to his top manager.
During the event “Risk Live Europe” in London, David Bailey, CEO of Prudential Policy at Boe, said that Britain is investigating stricter regulations on exposure to digital access.
“There are also examples where it may be more appropriate to start more against the restrictive end of the spectrum, while evidence is gathered to see if standards can be relaxed over time,” Bailey said during his speech at the risk management and financial market conference, such as the conference, such as the conference reported by Coindesk. “Prudential treatment of banks’ exposures to cryptoassettes, and especially those with functions associated with increased price volatility and where investors can lose the entire investment, is an example in this space.”
Bailey also said that Britain’s plans would be “informed” by the guidelines established by the Basel Committee for Bank Surveillance (BCBS) Publication for banks’ exposure to digital assets.
Committee – an international body that sets global standards for regulation and monitoring of banks to promote financial stability and strengthen the banking systems –definitive Its framework for the banks’ “disclosure of exposure to the cryptoass” in July last year and agreed to implement the standard on January 1, 2026.
The final revealing framework contains a set of standardized tables and templates covering banks’ exposures to digital assetswhich requires banks to reveal qualitative information about their digital asset-related activities and quantitative information on capital and liquidity requirements for their exposures to digital assets.
“The use of common demands for disclosure aims to improve the availability of information and support market discipline,” BCBS said when announced the final framework.
In addition, the Basel Committee recommended that banks only allow 1% of their investments to be in digital assets, a factor that is likely to play into BOE’s encouraged, more restrictive rules for exposure to digital access.
Boe’s recent statement on Digital asset policy Coming as HM Treasury and the UK’s financial sector regulator speeds up the progress of the country’s broader framework for digital assets.
UK’s supervisory development
In April, the Treasury published at high level Proposal for provisions For cryptoassettes and Stablecoins. With the title “Future Financial Services Regulatory Regime for Cryptoassets” delegated the officially detailed regulatory authority for the majority of the digital asset space for the Financial Conduct Authority (FCA), with the exception of Systemic Stablecoins, which falls under the Boe and UK Bank’s Bank’s Bank, Britain’s Bank Tank’s Bank Bank Regular,
It also described several high -level digital asset activities that would keep a unit in UK regulation and place foreign issuers of Stablecoins outside this reach.
This was followed, in May, by FCA – the UK’s highest financial sector regulator –publication two Consultation documentsOne on the “Stablecoin Emission and the Cryptoasset custody,” and the other about “a precautionary regime for cryptoasset companies.”
The Consultation Document on StableCoin emission and Cryptoasset Custody aims to ensure that regulated Stablecoins maintain their value and that customers have clear information on how the support assets are handled. In the meantime Consultation Document about a precautionary regime for cryptoasset companies Trying to determine rules to develop a safe, competitive and sustainable digital asset sector.
However, all these legislative progress must be taken in connection with the British Chancellor of the Tax, Rachel Reeves, which indicates that the country is planning to work with the United States to support innovation in the digital asset industry.
In an April 29 April statementReeves put out Britain’s pallet by saying that she aims to make the country the “best place in the world to renew herself.”
The chancellor also said that the UK and the United States would use its upcoming joint “financial regulatory work group” to “continue commitment to support the use and responsible growth of digital assets.”
In line with President Donald Trump’s Pro-Crypto regulatory agenda Would signal a transition from the more security-first and consumer protection method that has characterized how digital assets have so far been treated in the UK below Economic marketing system– Currently the only major regulation in the country that acts directly with the digital asset sector.
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