U.K. Banks Warned Not to Get Caught With Pants Down on Crypto
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The Bank of England warned U.K. lenders to do their homework before diving into the business of crypto currencies.
Banks are putting their reputations on the line when dealing with these volatile, relatively illiquid assets, and must ensure that their risk-management is up to speed, Sam Woods, head of the BOE’s Prudential Regulation Authority, said in a letter to chief executives on Thursday. Among the options under consideration is a firm-specific capital charge for crypto-assets, he said.