Sir Jon Cunliffe, Deputy Governor of the Bank of England, said that the British central bank is going to regulate Cryptocurrencies with new laws.
He said that we should think about regulation before it becomes integrated with the financial system.
Sir Jon Cunliffe discusses Crypto Regulation
In an interview with Sky News, Sir Jon Cunliffe, the deputy governor for financial stability at the Bank of England, talked about cryptocurrencies.
He said that the British central bank plans to make it harder to trade in Cryptocurrencies following the collapse of FTX.
The financial system was not destabilized by trading of Cryptocurrencies, but it was starting to develop links.
“We had banks and investment funds and other people who needed to invest in it and I figure we ought to contemplate regulation before it becomes integrated with the financial system and before we could have a likely systemic issue.”
The deputy governor of the Bank of England said that trading in Cryptocurrencies should be regulated.
He admitted that most coins were without intrinsic value and that they were little more than aamble.
There are people who want to engage in that activity.
If they do that with their eyes open in a place that is safe, then we should give them the chance to do that.
“Developing services that have benefits using those technologies to the real economy, then I think there’s a real benefit for the UK if we’re talking about creating a framework in which people can see whether they can create services that have benefits using those technologies to the real economy.”
However, he forewarned: “Assuming we’re looking at utilizing these crypto technologies to make, essentially, crypto assets that don’t have anything behind them … I don’t believe there’s steadily going to be a reasonable financial action around that.”
In November, Cunliffe said the collapse of crypto exchange FTX featured the dire requirement for more tight crypto regulation. The Bank of Britain leader consistently cautioned about the risk of cryptocurrency. In July, he said crypto is “inclined to collapse.” He also hopes to see tough times ahead for the industry as the Federal Reserve continues to fix financial conditions.