Bank of England Deputy Governor Sir Jon Cunliffe has revealed that the British central bank is planning to step up its efforts to regulate cryptocurrency trading with new laws. “We should think about regulation before it becomes integrated with the financial system and before we could have a potential systemic problem,” he stressed.
Sir Jon Cunliffe on Crypto Regulation
Sir Jon Cunliffe, Bank of European nation (BOE)’s deputy governor for money stability, talked regarding cryptocurrency in AN interview with Sky News weekday. He explained that Brits financial institution plans to maximize its effort with new laws to manage crypto commercialism following the collapse of crypto exchange FTX.
“Trading of crypto assets wasn't sufficiently big to destabilize the financial set-up, however it had been setting out to develop links,” Cunliffe aforementioned, elaborating
We had banks and investment funds and others who wanted to invest in it and I think we should think about regulation before it becomes integrated with the financial system and before we could have a potential systemic problem.
The Bank of European nation deputy governor noted that commercialism in crypto ought to be regulated instead of prohibited.
While cautioning that several coins were very little over a “gamble” and most were “without intrinsic worth,” he admitted: “There square measure those who wish to have interaction in this activity.” The BOE official clarified: “Provided they are doing that with their eyes wide open in a very place that's safe, isn't choked with concealing or illicit finance … then we must always give them a minimum of with the chance to try to to that.”
Cunliffe opined:
If we’re talking about creating the regulation in which people can see whether they can develop services that have benefits using those technologies to the real economy … then I think there’s a real benefit for the U.K.
However, he cautioned: “If we’re talking regarding victimisation these crypto technologies to form, basically, crypto assets that don't have anything behind them … I don’t assume there’s ever about to be a property money activity around that.”
In Nov, Cunliffe aforementioned the collapse of crypto exchange FTX highlighted the pressing would like for tighter crypto regulation. The Bank of European nation govt frequently warned regarding the danger of cryptocurrency. In July, he aforementioned crypto is “prone to collapse.” He additionally expects to check robust times ahead for the business because the central bank continues to tighten money conditions.
(Kevin Helms, Bitcoin.com, 2022)