{"id":59248,"date":"2022-03-25T16:25:04","date_gmt":"2022-03-25T14:25:04","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=59248"},"modified":"2025-09-04T20:51:24","modified_gmt":"2025-09-04T17:51:24","slug":"boe-outlines-approach-to-regulating-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/boe-outlines-approach-to-regulating-cryptocurrencies\/","title":{"rendered":"BoE outlines approach to regulating cryptocurrencies"},"content":{"rendered":"

The Bank of England (BoE) published<\/a> the framework principles for shaping the regulatory and legal framework for cryptocurrencies, focusing on the future risks posed to financial stability by a new class of assets.<\/p>\n

The BoE also noted the need for sector-specific rules to ensure compliance with the sanctions regime in light of the restrictions imposed on Russia due to the invasion of Ukraine.<\/p>\n

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“While crypto-assets are unlikely to provide a viable path for broad sanctions evasion at present, the possibility of such a route underscores the importance of supporting innovation with effective regulatory frameworks that uphold the integrity of the financial system and trust in it,” the document says.<\/p>\n<\/blockquote>\n

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“This will likely require expanding the role of existing regulators, as well as closer coordination among them,” the central bank added.<\/p>\n<\/blockquote>\n

The BoE stressed that digital currencies fall outside the regulatory ‘perimeter,’ and changes to the legislation are needed to ensure their ‘full coverage’.<\/p>\n

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“This will likely require expanding the role of existing regulators, as well as closer coordination among them,” the central bank added.<\/p>\n<\/blockquote>\n

Direct risks to financial stability from crypto-assets are currently assessed as limited by the BoE, but could rise if the sector’s growth continues.<\/p>\n

Officials say regulation should be ‘equivalent’. That means that if crypto-asset services provide services akin to those in traditional finance, the applicable rules should apply.<\/p>\n

Until digital assets are fully integrated into the regulatory framework, the BoE intends to ensure that the risks associated with them are controlled within the banking sector.<\/p>\n

In a letter<\/a>, Deputy Governor Sam Woods of the Bank of England drew attention to this point. He also expressed hope that financial firms on this issue will work closely with the regulators.<\/p>\n

The Financial Conduct Authority reminded<\/a> crypto firms of the need to register and to fully inform consumers about the risks of investing in digital assets.<\/p>\n

The Bank of England called for international cooperation<\/a> in cryptocurrency regulation.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of England (BoE) published the framework principles for shaping the regulatory and legal framework for cryptocurrencies, focusing on the future risks posed to financial stability by a new class of assets.<\/p>\n","protected":false},"author":1,"featured_media":59249,"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":[216,36,810],"class_list":["post-59248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-england","tag-regulation","tag-united-kingdom"],"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\/59248","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=59248"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/59248\/revisions"}],"predecessor-version":[{"id":59250,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/59248\/revisions\/59250"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/59249"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=59248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=59248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=59248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}