Britain to Front-Run Rules on Crypto : Bank of England

The government of England is supporting Basel Committee global rules on Banks for crypto holdings. 

Few days back, the Basel Committee published a notice for the global bank regulators to regulate the banks in a more restricted way, so that banks should not go with the crypto holdings. According to the rule of Basel Committee, all the banks holding Bitcoin or crypto assets, should have equal amounts of fiat funds separately in reserved form, so that under high volatility Banks can handle the situation perfectly. Basically the guidelines of the Basel Committee was just to introduce a restriction on the Banks, which wants to go with the crypto holdings.

Read also: Major Banks Oppose Rules for Crypto Risks by Basel

On 23 September, Sam Woods, the Deputy Governor, said that they will be the first to follow the global regulatory guidelines of Basel regarding Bank & Crypto assets. 

Sam further added that, this initiative will help Britain’s Banks to not to go with the crypto holdings and exposure to crypto assets without sufficient capital backing. 

The statement of Sam Woods is a clear indication that how Central banks are worried because of the revolution of financial institutions with the crypto adoption. And they fear that Crypto may replace the traditional financial system. That is why they are imposing high restrictions on banks, so that more people don’t trust Crypto. 

There are many major banks like JpMorgan, which are holding Bitcoins. Recently they oppose the regulatory guidelines of Basel. 

Read also: Fed chair says soon to release paper on CBDCs