Bank of England calls for regulating cryptocurrencies in line with traditional markets

Cryptocurrencies should be regulated in a manner akin to traditional finance to reduce risks in the industry and bolster investor confidence. This was stated by John Cunliffe, Deputy Governor of the Bank of England.

During the press conference the official recalled the коллапсе экосистемы Terra. In his words, digital assets cannot preserve their value and stability, causing stress on the markets.

“For me, this underscores the fact that now we need to introduce a regulatory system that will govern these risks in the crypto world just as we manage them in the traditional world,” said Cunliffe.

He acknowledged that cryptocurrencies have “real potential for use in the financial system”. However the deputy governor did not rule out that rules would have to “tweaked” to fit the industry due to its differences from the traditional financial system.

Earlier the Bank of England stated the importance of monitoring the market for digital assets. The regulator also called for strengthening the regulatory and enforcement framework in this direction.

In March, the Bank of England presented its approach to regulating cryptocurrencies, with a focus on future risks to financial stability.

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