Bank of England’s Cunliffe Pushes for Crypto Regulation – Sees ‘Real’ Benefits for the UK CryptoBlog

Bank of England Deputy Governor Sir Jon Cunliffe has revealed that the UK central bank plans to step up its efforts to regulate cryptocurrency trading with new laws. “We should be thinking about regulation before it enters the financial system and before we can have a potential systemic problem,” he said.

Sir Jon Cunliffe on crypto regulation

Sir Jon Cunliffe, Deputy Governor of the Bank of England (BOE) for Financial Stability, spoke about cryptocurrency in an interview with Sky News on Thursday. He explained that the British central bank plans to step up its efforts with new laws to regulate crypto trading following the collapse of crypto exchange FTX.

“Trading in crypto assets was not big enough to destabilize the financial system, but it was starting to develop ties,” Cunliffe said, adding:

We had banks and investment funds and others who wanted to invest in it and I think we should think about regulation before it becomes part of the financial system and before we can have a potential systemic problem.

The Bank of England Deputy Governor noted that crypto trading should be regulated rather than banned.

While warning that many coins were little more than a “bet” and most were “without intrinsic value”, he admitted: “There are people who want to engage in this business”. The BOE official clarified: “Provided they do it with their eyes wide open in a safe place, which is not full of money laundering or illicit financing…then we should at least give them the opportunity to do so. To do.”

Cunliffe said:

If we’re talking about creating the regulations where people can see if they can develop services that have benefits using these technologies for the real economy… then I think there’s a real benefit for the Kingdom -United

However, he cautioned: “If we’re talking about using these crypto technologies to create, essentially, crypto assets that have nothing behind them…I don’t think there’s ever going to be any sustainable financial activity around that. that.

In November, Cunliffe said the collapse of crypto exchange FTX highlighted the urgent need for stricter crypto regulation. The Bank of England executive has regularly warned of the danger of cryptocurrency. In July, he said crypto is “likely to collapse.” He also expects to see hard times ahead for the industry as the Federal Reserve continues to tighten financial conditions.

What do you think of Sir Jon Cunliffe’s statements on crypto and its regulation? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.