Bank of England Warns Capital Rule Relaxation May Increase Financial Risk

CryptoFrontier

2026-04-30 04:21:34

The Bank of England has expressed concern about plans to reduce capital requirements for professional trading firms, citing potential increases in financial risk, according to reports from April 30. This position creates a disagreement with the UK Financial Conduct Authority, which proposed the capital rule relaxation in late of the previous year.

Regulatory Disagreement on Trading Firm Capital Rules

The UK Financial Conduct Authority proposed relaxing capital requirements for trading firms under its supervision, with the stated goal of improving financial market liquidity. However, the Bank of England has raised concerns that reducing these capital requirements could increase financial risk within the financial system. The two regulators have taken divergent positions on the appropriate level of capital regulation for professional trading companies.

View Source

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related News

04-30 01:00

South Korea's Central Bank Ready to Take Action to Stabilize Markets Amid Middle East Concerns

04-29 09:18

Bitcoin Must Break $79,000 to Confirm Bottom, Willy Woo Says; Analyst Gives Move 30% Odds

04-28 12:27

SEC Requests Public Comment on NYSE Arca's 85% Eligible-Asset Rule for Crypto ETF Listings

Positioned or Left Behind? Altcoins Show Pre-Breakout Momentum with 150%+ Upside — 5 Coins Worth Buying Today

Crypto News Land04-30 01:31

Fed Maintains 3.5–3.75% With a 4-Vote Split: Powell’s Final Decision During His Tenure

ChainNewsAbmedia04-29 18:44

Coinbase Research Neutral on Q2 2026 Crypto Markets

Crypto Frontier04-29 12:33

Daimon issues a warning that private-placement credit markets are concealing recession risks, while JPMorgan remains actively involved

ChainNewsAbmedia04-29 00:24

FCA Removes IPO Research Rules to Revive UK Listings

Crypto Frontier04-27 18:42

Comment

0/400

StardustUnderTheGlassDome

· 04-30 12:52

Relax the capital requirements, traders are happy, depositors are sweating.

View OriginalReply0

GateUser-423f10e3

· 04-30 06:09

FCA wants to flood the market to stimulate it, while the BoE is watching Lehman moments; both sides are right, let's see who has the louder voice in the end.

View OriginalReply0

ColdStartUnderTheAurora

· 04-30 04:47

The Bank of England is worried for a reason; prop trading firms have high leverage, and the chain reaction is hard to withstand.

View OriginalReply0

MintCondition

· 04-30 04:39

It seems FCA has been successfully lobbied by the industry, and the BoE has come out to hit the brakes.

View OriginalReply0

MetalFrameBookPageCross

· 04-30 04:31

Classic regulator turf war, in the end, the unlucky ones might be small and medium investors.

View OriginalReply0

AirdropJanitor

· 04-30 04:31

The Bank of England is worried about systemic risk, after all, the lessons from 2008 were too profound.

View OriginalReply0

HeavyStakingOnASnowyNight

· 04-30 04:27

Capital buffers are like airbags; now some people want to make them thinner.

View OriginalReply0

YieldSpring

· 04-30 04:27

Is the UK playing a tug-of-war? On one side, they want financial competitiveness, and on the other, they're afraid of causing trouble.

View OriginalReply0