![\"Bank](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/11\/bank-of-england-ftx-768x432.jpg\")
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Bank of England\u2019s deputy governor for financial stability, Sir Jon Cunliffe, says the collapse of cryptocurrency exchange FTX has highlighted the urgent need for tighter crypto regulation. \u201cWe should not wait until it is large and connected to develop the regulatory frameworks necessary to prevent a crypto shock that could have a much greater destabilizing impact,\u201d said the deputy governor.<\/strong><\/p>\n Sir Jon Cunliffe, Bank of England\u2019s deputy governor for financial stability, shared his view on the collapse of cryptocurrency exchange FTX and the need for tighter crypto regulation at a Warwick Business School event Monday.<\/p>\n Citing \u201clast year\u2019s crypto winter and last week\u2019s FTX implosion,\u201d Cunliffe detailed:<\/p>\n While the crypto world \u2026 is not at present large enough or interconnected enough with mainstream finance to threaten the stability of the financial system, its links with mainstream finance have been developing rapidly.<\/p>\n<\/blockquote>\n FTX filed for Chapter 11 bankruptcy on Nov. 11. The exchange owes its 50 biggest creditors almost $3.1 billion.<\/p>\n The Bank of England deputy governor added that FTX\u2019s failure highlighted the need for regulators to establish tighter controls as quickly as possible. Referring to the crypto industry, Cunliffe stressed:<\/p>\n We should not wait until it is large and connected to develop the regulatory frameworks necessary to prevent a crypto shock that could have a much greater destabilizing impact.<\/p>\n<\/blockquote>\n Crypto firms operating in the U.K. are currently regulated by the Financial Conduct Authority (FCA). In addition, the British government is finalizing new financial services and market laws that will introduce regulation for stablecoins and the marketing of crypto assets.<\/p>\n Moreover, Cunliffe added that Britain\u2019s finance ministry will soon start consultation on extending investor protection, market integrity, and other regulatory frameworks that cover the promotion and trading of financial products to activities and entities involving crypto assets. In July, the Bank of England said crypto needs enhanced<\/a> regulatory and law enforcement frameworks.<\/p>\n The Bank of England executive concluded:<\/p>\n Our aim is to ensure that innovation can take place but within a framework in which risks are properly managed \u2026 The events of last week provide a compelling demonstration of why that matters.<\/p>\n<\/blockquote>\n Cunliffe previously cautioned that crypto is \u201cprone to collapse<\/a>,\u201d noting that its prices could fall to zero<\/a>. He also warned that cryptocurrencies will see tough times<\/a> as the Federal Reserve tightens financial conditions.<\/p>\nBank of England\u2019s Cunliffe on FTX Collapse and the Need for Crypto Regulation<\/h2>\n
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