Britain to front-run capital rules on crypto if need be, says Bank of England

FILE PHOTO: Britain's Deputy Governor for Prudential Regulation and Chief Executive Officer of the Prudential Regulation Authority Sam Woods speaks during the Bank of England's financial stability report at the Bank of England in the City of London, Britain June 27, 2017. REUTERS/ Jonathan Brady/Pool/File Photo

LONDON (Reuters) - Bank of England Deputy Governor Sam Woods said on Thursday he would front-run global rules if necessary to avoid Britain's banks building up big exposures to cryptoassets that were not backed by sufficient capital.

The global Basel Committee of banking regulators have begun work on capital requirements for banks which hold cryptoassets like bitcoin, proposing punitive charges that lenders said this week would make their involvement in the sector prohibitive.