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    PRA Demands Insight into Business Crypto Transactions and Future Plans by March

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    HI The new ‘Bank of England’ is no bank at all, cryptocurrency, C-man, coin, central bank of the United Kingdom, crypto revolution, UK, London, Great Britain, regulation, adoption

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    The Prudential Regulation Authority (PRA), the Bank of England’s regulatory team, has requested businesses reveal their present and future crypto dealings by March next year. This data will provide insights into the financial stability implications of crypto assets, helping shape effective policies. The PRA also seeks to understand how businesses use the Basel framework, a set of guidelines for managing bank exposure to crypto, and permissionless blockchains. The broad use of crypto is exhibited by companies such as Boyaa Interactive International and Japanese investment firm Metaplanet, which are investing heavily in Bitcoin.

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    The Bank of England’s regulatory team, the Prudential Regulation Authority (PRA), has asked companies to reveal their current and future dealings with cryptocurrencies by March next year. They issued a statement on Dec. 12 asking businesses to provide information on their expected crypto activities and explain how they are using the Basel framework, a set of guidelines that help manage risks and requirements for bank exposure to crypto.

    The goal of this move is to help the PRA and the Bank of England get a better handle on how crypto is being used by companies and shape their policies effectively. The data will also help analyze the pros and cons of different policy alternatives.

    The PRA is counting on this data to better understand the financial stability implications of crypto assets. They’ve asked companies to include future plans for dealing with crypto up to Sept. 30, 2029.

    A part of the survey asks how businesses are using the Basel framework for holding crypto assets and how they are using open, decentralized (also known as permissionless) blockchains. While these new types of digital ledgers have potential benefits, they also have risks — like uncertainties in final settlements and no guaranteed link to authentication.

    Companies around the world are increasingly getting involved with Bitcoin. For example, Boyaa Interactive International, an online card and board game company in Hong Kong, swapped almost $50 million worth of Ether into Bitcoin. Also, Japanese investment firm Metaplanet stated plans to raise more than $62 million to buy even more Bitcoin for its treasury, which currently holds more than $114 million worth of the crypto.

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