Bank of England Tough Rules Needed

T

he need to bring the crypto world within the regulatory framework was made clear by implosion of cryptocurrency exchange FTX, said Bank of England Deputy Governor Jon Cunliffe on Monday.

Cunliffe stated at a Warwick Business School event "FTX implosion is not at present large enough or interconnected enough with mainstream finance to threaten the stability of the financial system, its links with mainstream finance have been developing rapidly,"

FTX, seeking U.S. bankruptcy court protection, apparently it owes its 50 largest creditors close to $3.1 billion.

FTX's struggles made it evident that regulators need to introduce stricter policies as soon as possible. It lacked a licence to operate in Britain, yet still managed to cause some commotion.

At the moment, in Britain, crypto companies only need to demonstrate that they have put adequate controls in place to halt money-laundering. Still, many businesses have had their licence requests refused by the UK's Financial Conduct Authority (FCA).

Britain is approving a new financial services and markets law that will introduce regulation for stablecoins, a crypto asset backed by an asset such as a currency. This move will bring much-needed clarity to the marketing of crypto assets generally.

Mike

An editor at Coincrop

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Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.