LONDON (Reuters) – The Bank of England and the rules of engagement, and that Facebook’s Scale is a crypto-currency, as well as other new digital payments, providers would have to meet before they will be able to open for business in the united Kingdom.
FILE PHOTO: A man walks past the Bank of England in the City of London, england, February 7, 2019. (REUTERS photo/Hannah McKay/File Photo
The BoE’s Financial Policy Committee said uk banks and the rest of the financial system and be prepared for a “worst-case” Brexit, although there may be a failure, especially for customers in the European Union.
“The terms of engagement in innovation, such as the monitor, it must be assumed in advance of a launch,” the FPC said in a statement. “The BRITISH authorities should use their powers accordingly.”
The principles include a requirement for the entire payment chain in order to have the operational and financial resilience, and to provide sufficient information for regulators to monitor the payments.
“The weighing scale has the potential to be a systemically important payment system,” the BoE’s Financial Policy, the Commission said.
The so-called wallets for the crypto-cards are similar to bank accounts that are subject to a welter of regulations, such as deposit insurance, liquidity, and capital requirements.
The European Union on Tuesday said that the proposal for a new law to cover, crypto-asset projects, such as a Scale, saying it was a risk to the broader financial system as a whole.
In contrast to the EU, the Bank of England, the FPC, said that as of now, the application of the principles set out in the application of existing supervisory tools, rather than by having recourse to the new rules.
The FPC also stated that it will be in December of the changes you would like to see in a so-called open-ended funds, as a result of an investigation conducted by the Bank and by the Financial Conduct Authority (fsa).
High-profile fund manager, Neil Woodford, had to suspend its flagship fund in June, the detention of thousands of investors. The fund has daily redemptions for the customer, but it ran out of money, because it is a part of the assets can be sold.
Great britain, however, it may not be in a position to launch the fund, make changes in the rules themselves, as some people seem to have the support of the international regulatory bodies.
In a statement on Wednesday, the FPC, was a possible control of banks, which have been slow to stop using the London Interbank offered Rate (Libor), a reference in a financial contract.
The banks are fine in the billions of dollars for attempting to rig Libor, and the FPC wants lenders to make a shift to the use of Sonia, is an overnight, sterling-denominated interest rate benchmark is compiled by the central bank.
“There is no excuse for companies to continue increasing their exposure to the Libor,” the FPC said.
The risk, the watchdog said it is considering further “the potential policy and supervisory tools within the fourth quarter, with the decrease of the stock of senior Libor contracts.
Sterling Libor, is is set to be phased out by the end of 2021.
Reporting by Huw Jones and William Schomberg; firstname.lastname@example.org; +44 20 7542 5109