The Bank of England saw huge hurdles to handle the increasing adoption of the crypto and blockchain industry in the country.
England, the largest and southernmost country of the UK, is under tension to handle the cryptocurrency-based marketplace to ensure the safety of the investors and also to keep the bad actors away. The rapidly surging industry in England is pushing the government agencies to keep the matter of cryptocurrencies activities on top.
Recently Prudential Regulation Authority (PRA), the regualtory arm of the Bank of England, noted that the agency needed to raise around 321 million pounds ($419 million) by February of next year. This amount of fund is 9% more than the fund raised last year.
This raised fund will go to the funding for the regulatory bodies, which will work on the crypto-related issues to combat risks.
Agency also explained the proper reason behind this issue and stated that the UK left the EU, so the agency needed to add around 100 more employees to work on the regulation of the crypto industry.
Around a month ago, Finance Ministry considered regulation of stable coins a priority matter, which is the under use of crypto payments. So probably PRA will play role in this matter and also will Shake the budget significantly.
“Work will also continue in developing a regulatory framework that is ready for technological innovations, such as stablecoins,” the PRA said in a statement.
The main source to raise funds for the funding to the crypto regulatory bodies usually comes from crypto companies. Companies that pose a high risk, pay more to the regulatory body.
At present, the Bank of England is also studying and doing research on Central Bank Digital Currency (CBDCs) under collaboration with the Massachusetts Institute of Technology (MIT) Media Lab Digital Currency Initiative (DCI).
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