3 months ago 2 min read

Cryptocurrency Needs Strict Regulations, Says BOE Governor


Crypto investors and users now have a great deal of uncertainty and dread as a result of the FTX meltdown. After suffering significant losses against the backdrop of recent events, investors are reluctant to move on cryptocurrencies. The deputy governor of the Bank of England (BOE), Jon Cunliffe, recently stated that bitcoin trading is "extremely hazardous."

Jon Cunliffe recently brought up the recent arrest of former FTX CEO Sam Bankman-Fried in the Bahamas during an interview with Fox News. According to him, cryptocurrencies need to be regulated like other financial products in order to prevent crashes and safeguard investors. If nothing is done about digital assets, it won't be long until the crypto market has another FTX.

Nearly a million users were unable to withdraw their funds from the site when FTX failed. To protect the investors in the cryptocurrency "casino," Fox News noted that more than 80,000 FTX customers are in the UK. Cunliffe argued that digital assets require tight regulation.

It is essentially a gamble in my opinion, but we permit betting, so if you want to participate, you should be able to in a location that is regulated similarly to how gambling in a casino is regulated.

Central Bank of the UK's Digital Currency

In the UK, there is no particular cryptocurrency law. The nation views cryptocurrencies as property, not money. Additionally, the UK Financial Conduct Authority requires cryptocurrency exchanges to register (FCA).

The long-term objective of moving toward a cashless society was reviewed by the Bank of England in its October meeting on fresh proposals to introduce a central bank digital currency (CBDC). The central bank stated that it must closely monitor whether or not to introduce CBDC. There is a discussion going on about how it would operate and how it would affect the country.

We want to make sure that as physical cash is less useful in many areas of the economy, we might need to supply something digitally to give that foundation, Cunliffe continued.

Banks in the United Kingdom That Have Prohibited Cryptocurrency

A recent study of the top UK banks asked them if they would be interested in allowing bitcoin transactions on user accounts. In the UK, where cryptocurrency exchanges are unregulated, 47% of the banks declined to promote digital assets. You should be ready to lose all of your money if you invest in crypto assets, according to the Financial Conduct Authority (FCA).

Starling Bank, a London-based institution, recently declared that it will place limitations on cryptocurrency transactions. The move by Starling, a digital bank, to prohibit cryptocurrency-related activity on users' cards was justified by the fact that there is a considerable risk for digital assets in today's crypto market. Starling Bank customers will no longer purchase or sell digital assets on cryptocurrency exchanges.

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