Bank Of England Ponders Regulating Crypto

2021-10-08 17:05:32
To be or not to be?

The Bank of England reveals pondering crypto legislation in order to regulate the asset. This decision is a direct result of the mounting interest of the UK’s population in cryptocurrencies.

Specifically, the bank feels that although cryptocurrencies are not a threat at the moment, the increase of their influence is something that needs to be closely monitored.

According to the official statement from its Financial Stability Report, the bank concludes that crypto regulation is required both domestically and internationally.

Moreover, the Financial Stability Report also comments that financial institutions in the UK should take precautions when dealing with crypto. Especially if their intention is to adopt cryptocurrencies as digital assets.

The FPC considers that financial institutions should take a cautious and prudent approach to any adoption of these assets.Bank of England | Official Statement
Careful Approach

It really seems like the Bank for International Settlements stirred the world of banking regulators. Considering that the BIS is the authority that is a representative for the majority of central banks in the world.

In fact, the bank even published guidance on how can regulators recognize and oversee stablecoins. Especially since they are becoming more influential, i.e. a bigger threat by the day. Hence the urgency of this preliminary guidance.

That is why the Bank of England is currently in the process of creating crypto legislation, and eventually regulate crypto. This is nothing new, considering that countries such as the US and Uruguay also have their central banks pondering similar actions.

This news comes just as the Bank of England revealed that up to one-third of all small-to-medium businesses in the UK are suffering. And the bank states that there is one major culprit, and that is the COVID-19 pandemic. Hinting the bank will have a pretty busy upcoming quarter.

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