Article Reading Time:
1 min.
Deputy Governor of the Bank of England John Cunliffe believes that the crypto industry should be “checked” before it grows larger and its links with traditional finance are not strengthened.
Jon Cunliffe stated thatThe collapse of the FTX cryptocurrency exchange demonstrated the need for strict regulation of the industry. Although the industry is still not large enough to have a dramatic impact on financial stability, it is growing rapidly and strengthening its links with traditional finance.
"We shouldn't wait for the industrywill grow and become firmly connected to the financial system. It is necessary to develop a regulatory framework that would prevent any future shocks in both the crypto industry and traditional finance - such events could have a devastating impact in the future,” Cunliffe said.
UK Treasury soonwill begin consultations on expanding investor protection, market integrity and developing a regulatory framework, the official says. According to him, the main goal of such initiatives is to minimize risks and, if possible, manage them without slowing down innovation.
Earlier, Bank of England analysts said that the development of the metaverse market is forcing global regulators to develop laws that prevent systemic risks for the financial system.
Read this:
The Bank of England urged to regulate cryptocurrencies by analogy with the traditional market
Bank of England: Cryptocurrencies should be regulated similarly to traditional finance
Bank of England: Cryptocurrencies could trigger a crisis similar to 2008
The Bank of England called for tighter regulation of the metaverse
The largest bank of England will start to provide services for storing cryptocurrencies
Bank of England named the conditions on which Libra is ready to accept