Bitcoin wallet with enhanced mobile security features|In This ArticleWhy Banks Are Being Pulled Back from the EdgeOne Percent Is the Magic NumberMore Repo

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.

🚨 BREAKING: The Bank of England is taking steps to restrict cryptocurrency activities for commercial banks, aiming to promote financial stability across the UK. 🔒💰

📉 Aimed at minimizing risks and ensuring a stable financial system.#Crypto #BankOfEngland #Finance #UK… pic.twitter.com/S8wlWC03o8

— Crypto News Hunters 🎯 (@CryptoNewsHntrs) June 19, 2025

One Percent Is the Magic Number

Under the proposal, UK banks would be expected to cap their holdings of cryptocurrencies at just one percent of their total assets. That’s a number coming straight from the Basel Committee, the global group that sets banking standards. The idea is to give crypto some room without letting it throw off the financial balance sheet.

More Reporting, More Transparency

It is not just about limits. Banks will also have to be more transparent. A new set of disclosure rules will roll out around the same time, requiring banks to share details about how much crypto they hold and in what form. That way, regulators and the public can see exactly how much risk is being taken on and where it’s coming from.