Bank of England Deputy Governor John Cunliffe has revealed that the Bank of England plans to step up efforts to regulate cryptocurrency trading with new legislation. “We should think about regulation before it becomes part of the financial system and before potential systemic problems arise.” he emphasized.
Sir John Cunliffe on Cryptocurrency Regulation
Sir John Cunliffe, Deputy Governor for Financial Stability at the Bank of England (BOE), spoke about cryptocurrencies in an interview with Sky News on Thursday. He explained that the UK central bank plans to step up its efforts with new legislation regulating cryptocurrency exchanges following the collapse of the FTX cryptocurrency exchange.
“Cryptocurrency trading wasn’t big enough to destabilize the financial system, but it was starting to develop a linkJohn Cunliffe said:
There were people who wanted to invest in it, such as banks and investment funds. I think we should think about regulation before it is built into the financial system, before it creates potential systemic problems.
The Deputy Governor of the Bank of England said cryptocurrency trading should be regulated, not banned.
many coinsBed‘ and most of them are ‘of no intrinsic value“, he admitted:”There are people who want to enter this industry. “ A BOE representative said:If they do it with wide eyes in a safe place that is not full of money laundering or illicit finance… at least we should give them the chance to do it.“
John Cunliffe said:
I think there is real interest for the UK if we are talking about creating regulations that allow people to see if they can develop profitable services using these technologies for the real economy.
However, he cautioned, “I don’t believe there is a sustainable financial business if we are talking about using these cryptographic techniques to create crypto assets that basically have nothing behind them.” did.
In November, Jon Cunliffe said the collapse of the FTX cryptocurrency exchange highlighted the urgent need for stricter cryptocurrency regulation. The governor of the Bank of England regularly warns about the dangers of cryptocurrencies. In July, he said the cipher was “crumbling”. He also expects the industry to face tough times as the Federal Reserve continues to tighten its fiscal situation.