Bank of England Considering Tighter Crypto Rules

Bank of England have warned of considering tough new rules to prevent British banks from building up exposure to crypto assets. The Deputy Governor for the Bank of England, Sam Woods, said that rules set out by the Basel Committee, that would require banks to hold capital in reserve equal to their bitcoin exposure, are "quite sensible".

Crypto Warning Issued

The Basel Committee recently issued a warning to the financial industry about cryptocurrencies. The committee, which is made up of representatives from 27 countries, stated that they are currently investigating rules to prevent British banks from having exposure to cryptos.

Bank of England Prepared

Woods said that the Bank of England was prepared to introduce rules on capital treatment that "front run" worldwide regulation and tighten regulation on new assets. He said that cryptocurrencies are currently unregulated and do not meet the requirements of a "serious financial asset."