Bank of England Says Crypto Has Busted Its Budget in $419M Shortfall

The financial regulator said it’s planning to hire about 100 more employees

article-image

The Bank of England | Source: Shutterstock

share
  • The BOE is increasing its regualtory budget this year to combat what the bank considers growing risks from emerging technologies
  • Banks, insurance companies and related financial entities will have to fork over 9% more than last year

Thanks to crypto, the Bank of England’s regulatory arm says it needs additional funding this year to cover the rising costs of its watchdog responsibilities. 

The Prudential Regulation Authority (PRA) plans to raise 321 million pounds ($419 million) by February 2023, a 9% increase from last year, to combat growing risks around cryptocurrencies and other emerging technologies, the regulator said in its annual business plan Wednesday. 

The agency said operational costs have increased since the United Kingdom’s exit from the European Union, adding that the regulator hopes to add 100 employees with digital assets know-how. 

The budget comes as UK regulators — like their American peers — play catch-up on crypto regulations. The country’s treasury recently made headlines when it asked the Royal Mint, the agency responsible for creating British currency, to mint an NFT.

The finance ministry earlier this month moved to prioritize regulating stablecoins that are used for payments. The PRA plans to use a slice of its regulatory budget for that purpose.

“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 funds will be collected from regulated firms, including banks, building societies and insurers. In the 12 months ending in February, the PRA secured 297 million pounds ($386 million) from such entities.

Regulated firms pay different amounts, depending on size and activity. The fee structure is designed so the firms that could potentially cause the greatest harm to the financial system pay more, the PRA said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Bain Capital Crypto and Haun Ventures co-led the round as demand grows for Bitcoin-denominated savings and annuities

by Blockworks /
article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /