Britain’s banking regulator will tap the commercial institutions it oversees for funds that will help it hire staff to track risks including the growing crypto market.
The Prudential Regulation Authority, which is part of the Bank of England, is planning to raise 321 million pounds ($419 million) from the firms it regulates for the year thorugh February 2023. That’s an 8% increase on the previous year.
The authority is seeking to employ 100 more staff and will “ask firms to report their cryptoasset exposures, treatments and future investment plans,” to help establish a common international framework for digital currencies, the PRA said in its business plan published on Wednesday.
The Bank of England is pushing for the role of regulators to be expanded on crypto. It’s concerned that the $1.7 trillion crypto market is now big enough that it could unsettle the broader financial system in times of strain.
The PRA said it will also continue working to developing a regulatory framework that’s ready for innovations such as stable coins.
For now crypto is still a drop in the water in the $469 trillion global financial system, making up just 0.4% of the total amount, according to the BOE. However, BOE officials have been building the case for regulation for some time, noting that crypto is now bigger than the subprime mortgages business was when it triggered a financial crisis in 2008.
The regulator levied 297 million pounds from its regulated firms in the 12 months to February 2022, 24 million pounds lower that its current target.
©2022 Bloomberg L.P.