UK Regulator Seeks Crypto Data to Shape Future Policy

On December 12, the UK’s Prudential Regulation Authority (PRA), part of the Bank of England, issued a request for data on crypto asset exposure, reports PaySpace Magazine. This initiative seeks to inform the regulator’s policy approach as it prepares for the Basel framework's implementation for prudential treatment of crypto assets in 2025.

The PRA is asking UK-based firms to disclose their current and planned crypto asset exposures. Firms must also report how they are applying the Basel framework’s guidelines, which outline risk management and capital requirements for different categories of crypto assets. The Basel framework, established by the Basel Committee on Banking Supervision (BCBS), treats stablecoins and tokenized assets similarly to traditional financial instruments while assigning higher risk—and stricter capital rules—to unbacked cryptocurrencies.

As a BCBS member, the Bank of England helps shape global standards for crypto regulation and adapts these frameworks to the UK’s financial system. The PRA’s new data request, due by March 24, 2025, excludes firms without crypto asset exposure. This move aims to improve oversight of crypto activity among PRA-supervised entities, including banks and investment firms. Data collected will guide policy development, support financial stability, and clarify regulatory expectations for the growing crypto sector.

With 12% of UK adults now owning crypto, up from 10% in prior findings, consumer interest continues to rise. However, skepticism persists, with 4 in 5 Britons indicating trust only in regulated financial products. The PRA’s effort is a step toward providing the clarity and security needed for broader confidence in crypto markets.