UK to Cap Bank Crypto Holdings at 1 Percent by 2026

The Bank of England is setting the stage for a big change in how British banks interact with cryptocurrencies. Starting in 2026, banks will face new limits on how much digital asset exposure they can take on. The move is part of a wider push to reduce risk and keep the traditional financial system from.. The post UK to Cap Bank Crypto Holdings at 1 Percent by 2026 appeared first on 99Bitcoins.

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Jun 20, 2025 - 21:00

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UK to Cap Bank Crypto Holdings at 1 Percent by 2026

The Bank of England is setting the stage for a big change in how British banks interact with cryptocurrencies. Starting in 2026, banks will face new limits on how much digital asset exposure they can take on. The move is part of a wider push to reduce risk and keep the traditional financial system from being rattled by crypto’s ups and downs. Transparency is an important part of the Bank of England crypto framework, with banks required to disclose their crypto activity in detail.

Why Banks Are Being Pulled Back from the Edge

David Bailey, director of prudential policy at the Bank of England, explained the thinking behind the restrictions. In short, volatile assets like Bitcoin are too unpredictable to form a big chunk of a bank’s portfolio. Bailey called for a “conservative approach,” saying banks need to manage crypto in a way that protects both themselves and their customers.