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Bank of England Deputy Governor Sir Jon Cunliffe has revealed that the British central bank is planning to step up its efforts to regulate cryptocurrency trading with new laws. \u201cWe should think about regulation before it becomes integrated with the financial system and before we could have a potential systemic problem,\u201d he stressed.<\/strong><\/p>\n Sir Jon Cunliffe, Bank of England (BOE)\u2019s deputy governor for financial stability, talked about cryptocurrency in an interview with Sky News Thursday. He explained that the British central bank plans to step up its effort with new laws to regulate crypto trading following the collapse of crypto exchange FTX.<\/p>\n \u201cTrading of crypto assets was not big enough to destabilize the financial system, but it was starting to develop links,\u201d Cunliffe said, elaborating:<\/p>\n We had banks and investment funds and others who wanted to invest in it and I think we should think about regulation before it becomes integrated with the financial system and before we could have a potential systemic problem.<\/p>\n<\/blockquote>\n The Bank of England deputy governor noted that trading in crypto should be regulated rather than banned.<\/p>\n While cautioning that many coins were little more than a \u201cgamble\u201d and most were \u201cwithout intrinsic value,\u201d he admitted: \u201cThere are people who want to engage in that activity.\u201d The BOE official clarified: \u201cProvided they do that with their eyes wide open in a place that is safe, is not full of money laundering or illicit finance \u2026 then we should provide them at least with the opportunity to do that.\u201d<\/p>\n Cunliffe opined:<\/p>\n If we\u2019re talking about creating the regulation in which people can see whether they can develop services that have benefits using those technologies to the real economy \u2026 then I think there\u2019s a real benefit for the U.K.<\/p>\n<\/blockquote>\n However, he cautioned: \u201cIf we\u2019re talking about using these crypto technologies to create, basically, crypto assets that have nothing behind them \u2026 I don\u2019t think there\u2019s ever going to be a sustainable financial activity around that.\u201d<\/p>\n In November, Cunliffe said the collapse of crypto exchange FTX highlighted the urgent need<\/a> for tighter crypto regulation. The Bank of England executive regularly warned about the danger of cryptocurrency. In July, he said crypto is \u201cprone to collapse<\/a>.\u201d He also expects to see tough times ahead<\/a> for the industry as the Federal Reserve continues to tighten financial conditions.<\/p>\nSir Jon Cunliffe on Crypto Regulation<\/h2>\n
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