The Bank of England (BoE) official said that the crypto world needs regulatory framework.
Currently, crypto firms in the UK only have to demonstrate that they can implement adequate controls to stop money laundering. Still, many companies’ license applications were rejected by UK regulators. The UK, which keeps regulations tight, also states that clear regulation is needed after the collapse of crypto exchange FTX.
Bank of England: Regulation Required
Bank of England (BoE) Deputy Governor Jon Cunliffe said in a statement at an event held at Warwick Business School; He said that the collapse of cryptocurrency exchange FTX shows the need to bring the crypto world into regulatory framework.
Cunliffe continued his explanation as follows:
“Although the crypto world is not large enough or sufficiently connected to mainstream finance to threaten the stability of the financial system at the moment, as demonstrated during last year’s crypto winter and last week’s FTX boom, its links to mainstream finance are developing rapidly.”
He stressed that FTX’s woes are that regulators need to introduce tighter controls as soon as possible.
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