Bank of England wants More Regulations for Crypto

The list of those calling for crypto regulations continues to grow as the Bank of England joins. The Bank on Monday called for a better regulatory and legal framework for Cryptocurrencies to properly monitor the fast-evolving market. 

Bank of England Demands Crypto Regulation

This was part of its December financial stability report and the minutes of the Financial policy committee (FPC) meetings between November 29 and December 9. 

According to the Bank, there’s a need for these changes both globally and domestically:

• It claimed that such regulations would help manage the risks and encourage sustainable innovations while maintaining the integrity and trust of the financial system. 
• The Bank recognized the benefits of innovation but claimed innovation but believed that any development or innovation could only be sustainable when there are effective policy frameworks to support it.
• The FPC further stated that it supports the UK Treasury’s proposal for a framework that will regulate the use of stablecoins for payment. The proposal that was released earlier this year included suggestions that systemic stable coins should be placed under the regulatory control of the Bank.

This new call for regulations only mirrors the previous approach of British regulatory authorities toward crypto.

UK’s Growing Crypto Regulations

The Financial Conduct Authority has taken a tough stance against crypto assets over the years as it continues to warn consumers about the risks of losing their investments. In January 2021, the FCA warned consumers to be prepared to lose all their money if they invested in crypto assets.

With these new statements, it appears that the United Kingdom is set for some crypto regulations. The Deputy Governor for Financial Stability Jon Cunliffe mentioned in November that crypto assets might destabilize the UK financial system. He further added that regulators have to be very careful about the risks given the growing crypto adoption within the traditional financial.