Bank of England Deputy Governor for Financial Stability, Sir Jon Cunliffesharing his view on the collapse of the cryptocurrency exchange FTXand the need for stricter regulation of cryptocurrencies, within Warrick’s event Warwick Business School.
Also read: Bank of England calls for expansion of regulation to include crypto
Where explained Cunliffe Citing last year’s crypto winter, and the crash of the stock exchange FTX Recently:
“While the cryptocurrency world is not currently large, or interconnected with mainstream finance, enough to threaten the stability of the financial system, its correlation with mainstream finance is evolving rapidly.”
Recall that Bursa FTXshe had filed for bankruptcy under dismissal 11in 11 November, the stock market owes to 50 of its major creditors, up to 3.1 Billion dollar.
As the Deputy Governor of the Bank of England added, that failed ftx, He highlighted the need for regulators to put in place tougher controls as quickly as possible.
It is worth noting that cryptocurrency companies operating in the UK are currently subject to regulation before Financial Conduct Authority (FCA).
The UK government is also finalizing new Market and Financial Services laws, which will introduce regulations on stablecoins and the marketing of crypto assets.
Moreover, he added Cunliffe The UK Treasury will soon begin consultations on expanding investor protection, market integrity and other regulatory frameworks, covering the promotion and trading of financial products, to activities and companies involving crypto assets:
“Our aim is to ensure that innovation can happen, but within a framework where risks are managed properly, and the events of the past week provide a compelling demonstration of why this is so important.”
Also read: Bank of England: “Metavirus” may cause financial instability
It should be noted here, that Cunliffe He had previously warned that the cryptocurrency is vulnerable to a crash, indicating that its prices could drop to zero. He also warned that cryptocurrencies will see hard times, as the Federal Reserve tightens financial conditions.
Source: Crypto Arabia