Prudential Regulatory Authority (PRA), the banking regulatory body of the United Kingdom, is set to propose new rules for the issuing and holding of cryptocurrencies following the finalization of the Basel 3 norms.
The proposals are expected to cover a range of issues like licensing, and registration and keep an eye on corruption. The rules are also likely to address money laundering and terrorist financing, which have become a big concern in the crypto market. Without any relevant framework, cryptocurrencies can act as a weapon to destroy a country’s economy by insurgents.
Executive director of the PRA, Victoria Saporta shared her views on this proposal and said: “I also believe that it is normally easier for internationally active firms to follow one global rulebook instead of having to meet the expense of adapting to a patchwork of local standards.”
This proposal comes after the Basel Committee on Banking Supervision, a body that sets global banking standards, recently finalized its Basel 3 structure.
The new framework that aims to be implemented over the next several years is designed to strengthen the resilience of the global banking system and ensure that banks hold sufficient capital to weather future financial crises.
Some experts have welcomed the UK regulator’s move to propose new rules for the crypto market, saying that it is a crucial step in ensuring the longevity of digital currencies.
The United Kingdom banking regulator is expected to release its proposed rules for the crypto market in the coming months, after which they will be subject to public consultation before being finalized.