{"id":59199,"date":"2022-03-24T18:56:12","date_gmt":"2022-03-24T16:56:12","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=59199"},"modified":"2025-09-04T20:36:32","modified_gmt":"2025-09-04T17:36:32","slug":"bank-of-england-moves-to-build-regulatory-framework-for-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bank-of-england-moves-to-build-regulatory-framework-for-cryptocurrencies\/","title":{"rendered":"Bank of England moves to build regulatory framework for cryptocurrencies"},"content":{"rendered":"<p>The rapid growth of the cryptocurrency market without proper regulation could pose risks to financial stability. The Bank of England said, according to <a href=\\\"https:\/\/www.reuters.com\/article\/idUSL2N2VR0ON\\\">Reuters<\/a>.<\/p>\n<p>\\n\\n<\/p>\n<p>The issue gained urgency amid fears that digital assets could be used by Russia to bypass sanctions.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\\&#8221;While cryptocurrencies are unlikely to help bypass sanctions at the scale required, such a possibility underscores the need for effective policy frameworks to sustain broader trust and integrity in the financial system,\\&#8221; the statement said.\\<\/p>\n<\/blockquote>\n<p>\\n\\n<\/p>\n<p>Cryptocurrencies are moving beyond the so-called regulatory perimeter. Legislation will be needed for them to fall fully under securities rules.<\/p>\n<p>\\n\\n<\/p>\n<p>Regulation of the sector should be based on the principle of \u201cequivalence\u201d. In other words, crypto-related financial services that perform the same function as in the traditional system should be subject to the same laws, the statement said.<\/p>\n<p>\\n\\n<\/p>\n<p>Until a regulatory framework is developed for cryptocurrencies, the Bank of England will focus on mitigating crypto-related risks in the banking sector.<\/p>\n<p>\\n\\n<\/p>\n<p>According to Deputy Bank of England Governor Sam Woods, lenders will have to scrutinise such challenges and adapt their strategies as well as risk-management systems.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\\&#8221;We expect that organisations will discuss the proposed prudential approach with the regulators,\\&#8221; Woods said.\\<\/p>\n<\/blockquote>\n<p>\\n\\n<\/p>\n<p>The Bank of England and the UK&#8217;s Financial Conduct Authority will continue work on rules for stablecoins and will run consultations on a regulatory \u201cmodel\u201d for systemic stablecoins in 2023.<\/p>\n<p>\\n\\n<\/p>\n<p>In December 2021, the Bank of England <a href=\"https:\/\/forklog.com\/en\/news\/bank-of-england-calls-for-international-cooperation-in-cryptocurrency-regulation\">called for<\/a> international cooperation in regulating cryptocurrencies.<\/p>\n<p>\\n\\n<\/p>\n<p>Earlier the regulator <a href=\"https:\/\/forklog.com\/en\/news\/bank-of-england-weighs-regulation-of-stablecoins\">considered<\/a> regulating stablecoins and <a href=\"https:\/\/forklog.com\/en\/news\/bank-of-england-calls-bitcoin-collapse-a-plausible-scenario\">pointed to<\/a> the need for urgent development of a regulatory framework for digital assets.<\/p>\n<p>\\n\\n<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The rapid growth of the cryptocurrency market without proper regulation could pose risks to financial stability, the Bank of England said.<\/p>\n","protected":false},"author":1,"featured_media":59200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[216,36],"class_list":["post-59199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-england","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/59199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=59199"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/59199\/revisions"}],"predecessor-version":[{"id":59201,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/59199\/revisions\/59201"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/59200"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=59199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=59199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=59199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}