Bank of England calls for regulation of cryptocurrencies ‘before problems arise’

Cryptocurrencies are increasingly integrated into the traditional financial system, so a regulatory framework is needed before the emergence of ‘systemic problems’. This was stated by Bank of England Deputy Governor John Cunliffe in an interview with Sky News.

According to him, regulation is necessary to protect retail investors and the financial system as a whole. In particular, British authorities are already considering steps in this direction.

«We had banks, investment funds and others who wanted to invest in this [cryptocurrencies]. I think we should think about regulating before [digital assets] are integrated into the financial system and before we encounter potential problems», emphasised Cunliffe.

Earlier, the Bank of England’s Deputy Governor proposed regulating digital assets in line with traditional finance. He also noted that decentralized protocols do not yet provide an effective way to manage risks.

In December it was announced that the UK cabinet would present new rules for the operation of the digital assets industry.

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