Mr Vice-President Bank of England has decided to comply with the rules recently laid down by the Basel Committee on Banking Supervision for cryptography and other digital assets.
Sam Woods, the deputy governor of the Bank of England, has stated his country would be the first take a position on global standards for regulations on cryptography and related digital assets. This effort would, in fact, be to avoid UK banks, which gained high visibility in the world of digital assets, even without significant capital funding. The central bank said they were following the rules set by the Basel Committee on securing secret assets.
The rules to which Sam Woods refers are proposed and dictated by the Basel Committee on Banking Supervision. More recently, the Committee has just launched procedures to develop the rules properly, and experts say these rules may just as well become the standard for most large global banks.
According to the rules laid down by the Basel Committee, large banks around the world with cryptographic and digital assets must have sufficient capital equal to the amount of cryptography they hold. In addition, these rules include a set of disciplinary charges that may be effective enough to ensure that a lender’s participation in encryption is prohibited. The Deputy Governor has called these rules sensible enough and even mentioned that banks do not have sufficient exposure to cryptographic assets.
The Deputy General Manager also stated that they do not want to prevent any company from engaging in commercially viable and prudent operations. However, he also noted that they take a fairly conservative approach to capital treatment, and if they deem it necessary, they may as well introduce some capital measurements, even if they have to do it in some other way. .
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