Cryptocurrencies need to be regulated similarly to traditional finance in order to reduce risks inindustry and increasing investor confidence. This was stated by Deputy Governor of the Bank of England John Cunliffe.
During the press conference, the official recalled the collapse of the Terra ecosystem. According to him, digital assets cannot maintain their value and stability, causing stress in the markets.
“For me, this highlights the fact that nowwe need to put in place a regulatory system that will manage these risks in the crypto world in the same way that we manage them in the regular world,” said Cunliff.
He acknowledged that cryptocurrencies have a "realpotential for use in the financial system”. However, the deputy head of the Central Bank did not rule out that the rules would have to be "tailored" to the industry due to its differences from the traditional financial system.
Earlier, the Bank of England stated the importance of monitoring the digital asset market. The regulator also called for strengthening the regulatory and enforcement framework in this direction.
Recall that in March, the British Central Bank presented an approach to regulating cryptocurrencies with an emphasis on future risks to financial stability.
Read ForkLog bitcoin news in our Telegram - cryptocurrency news, courses and analytics.
Read this:
Bank of England: Cryptocurrencies should be regulated similarly to traditional finance
Bank of England: Cryptocurrencies could trigger a crisis similar to 2008
Bank of England: “Private cryptocurrencies may be useful in the future”
Bank of England to complete assessment of digital pound benefits by end of 2022
The largest bank of England will start to provide services for storing cryptocurrencies
Bank of England issues requirements for launching Libra in UK