The Bank of England’s Financial Policy Committee has said regulation for the crypto market is needed.
In Brief:
It has stated “enhanced regulation” is needed to mitigate against potential risks, according to CoinDesk.
This has been prompted by the recent “crash” where cryptocurrency valuations have plummeted.
The intention was outlined in the Bank’s Financial Stability Report.
What does this mean?
The Treasury has already announced its intention to regulate stablecoins, and is setting up more policies to deal with the cryptocurrency market. The FCA is taking into account crashes like Terra as it considers what regulation should look like. This intention by the Bank of England will be another step to regulate the crypto market, and shows that recent drops in valuation and collapses of certain currencies will form part of its decision.
