The Bank of England is expanding its budget by £24.3m as it seeks to tackle risks associated with crypto assets.
The Prudential Regulation Authority, which mitigates financial risks in the banking and insurance sectors, has said it will increase its oversight of crypto this year.
In a business plan published today the regulator said its annual budget will expand by eight per cent to £321m as part of plans to grow its workforce to 1,440.
“We are committed to keeping pace with innovation and emerging risks, including the ongoing digitalisation of financial services and the growth of crypto assets, the increasing use of artificial intelligence and machine learning, and developments in FinTech,” said Sam Woods, a deputy governor and head of the Prudential Regulation Authority.
The regulator will require firms to report their crypto asset exposures and future plans and will engage with international partners, including the Basel Committee on Banking Supervision, to develop crypto exposure rules for financial institutions.
The PRA said it intends to “keep pace with innovation in the financial system” such as the use of crypto assets and develop a regulatory framework that is ready for technical innovations such as stablecoins.
The comments come after the UK government announced plans to transform Britain into a “global hub” for digital assets.
Read more: Crypto the ‘new front line’ for scammers, says Bank of England governor
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