According to Bloomberg, the Bank of England (BOE) intends to tighten regulation of cryptocurrencies for the global frameworks, preventing from harming its financial stability.
The current size of the crypto-asset market has grown by more than ten times from $0.13 trillion since January 2019. According to CoinGecko, the value of the cryptocurrency market was back at $2 trillion as of 10:15 a.m. ET on March 3. The total cryptocurrency market value is still below the $3 trillion since four months ago.
With many assets outside the scope of the Financial Conduct Authority (FCA), the Bank of England suggested expanding the role of the prudential and market integrity regulator to coordinate and cooperate with each other in regulating crypto assets, according to minutes of the BoE meeting released Thursday.
the BOE committee said that:
“Enhanced regulatory and law enforcement frameworks are needed, both domestically and at a global level,”
In addition to this, the BoE also stated that while the immediate risks to the UK financial system are limited, there may be financial stability risks if the pace of growth in crypto assets continues.
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