Bank of England to tighten crypto regulation

The financial regulator has requested additional powers to oversee digital assets

25.03.2022 - 08:00

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What’s new? The Bank of England Financial Policy Committee has requested additional powers from the government to strengthen oversight and regulation of cryptocurrencies. In its report, the Central Bank stated that the adoption of digital assets poses financial risks and urged commercial banks to exercise caution.

Bank of England’s report

What else does the report say? The regulator also asked other bodies to ensure that “crypto markets do not overheat” and that financial firms do not take unnecessary risks. If the growth rate of digital assets continues, cryptocurrencies and DeFi will become interconnected with the wider financial system, the Bank of England believe.

“This will present financial stability risks. Enhanced regulatory and law enforcement frameworks are needed, both domestically and at a global level,” the report says.

In March, the UK government issued new guidance for advertising cryptocurrencies, which requires mentioning the high risks of losing investments. The country also suspended crypto ATMs under the UK Money Laundering Regulations.

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