UK raises budget by £24m to compensate crypto risks
The British budget for the current year increased by £24.3 million and amounted to £320.9 million. The increase was initiated by the UK Prudential Regulatory Authority (PRA). Additional assets should compensate for the risks associated with digital currencies.
The business plan developed by PRA includes a strategy, work plan and budget for 2022-2023. Particular attention is paid to maintaining and improving the strengths of the banking and insurance sectors, created in response to the financial crisis of reforms, identifying new and emerging risks in the markets. In particular, we are talking about eliminating the risks caused by the use of cryptocurrencies by companies.
Pursuant to the orders of the regulator, legal entities are now required to provide information regarding investment plans involving digital assets. It should include information about potential risks and problems, and how to eliminate them.
Also, the British regulator continues to take part in setting international regulatory standards and cooperate with global bodies, including the Basel Committee on Banking Supervision and the International Association of Insurance Supervisors. Effective international cooperation is seen by the UK as the basis for eliminating global risks and maintaining its own financial stability.