- BoE Deputy Governor Jon Cunliffe, during a conference in London, highlighted that the regulators need to consider extending standards and regulatory regimes to cryptos.
- He added that it needs to be done in a manner that doesn't hurt innovation and simultaneously reduces risks.
- The crypto markets are also under extreme pressure, with the overall market cap dipping to US$938.13 billion with a total crypto market volume of US$80.86 billion as of 29 September.
The Bank of England (BoE) has been under tremendous pressure with the soaring inflation and increasing cost of living crisis. This has resulted in the United Kingdom's emergency move, opting to buy bonds again to reduce the chaos in financial markets.
And it is not just the traditional markets feeling the macro-economic pressure. The crypto markets are also under extreme pressure with the overall market cap dipping to US$938.13 billion with total crypto market volume of US$80.86 billion in the past 24 hours as of 29 September. In fact, the market has failed to show positive signs this year, and the Terra Luna collapse and the 3AC and Voyager fiasco have dented the market considerably.
Therefore, it's not surprising that global regulators pitch for an accelerated approach toward crypto regulations. The BoE is now considering extending the existing Financial Regulations to the crypto sector as well.
BoE deputy governor bats for extending regulatory regimes to cryptos
BoE Deputy Governor Jon Cunliffe, during a conference in London, highlighted that the regulators need to consider extending standards and regulatory regimes to cryptos as well, as they have a greater impact on the financial system. He further added that it needs to be done in a manner that doesn't hurt innovation and simultaneously reduces risks.
The UK has been upping the ante to supervise the growth of crypto and DLTs in the country. Cunliffe pointed out that one must make the most out of the DLT technology for trade and post-trade settlements.
Cunliffe is not the only one who was of the view of extending regulatory norms to cryptos. In fact, earlier this year, the White House released a comprehensive framework for the Responsible Development of Digital Assets earlier this year. Many believe that the framework is the right step as it shows that the regulators are keen to offer clarity on the dos and don'ts that industry players are eager to hear.
Cunliffe's comments are similar to what ECB executive board member Fabio Panetta had pointed out. Panetta, too, suggested that the European Central should consider using the features of DLT and Target services to develop the digital assets. All in all, regulators and market participants must be on the same page. The regulatory norms mustn't stifle innovation. At the same time, it must ensure that the regulators have the power to punish illicit players for taking advantage of unassuming investors.
Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instruments or cryptocurrencies, you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete, or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.