Crypto assets a danger to the financial market – Bank of England

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TL;DR Breakdown

• Bank of England believes that cryptocurrencies could unbalance the financial market.
• At least two million citizens in England trade in crypto assets.

The BoE, better known as the Bank of England, spoke about using crypto assets and their problems to the traditional financial market. Since the middle of the year, the Bank of England has been against crypto, but its repressions have increased, supported by other European regulators.

According to Sir Jon Cunliffe, who serves as vice-governor at the European banking agency, the number of crypto holders in the United Kingdom does not reach 1 percent. Still, the crypto investors increase enormously, which worries him. The UK is one of the few countries in Europe that has held off on cryptocurrencies because of the regulator’s opinions or because they have not offered a scheme that traders are interested in.

Trading in crypto assets once again repressed in the UK

Crypto assets

England has again shown little interest in crypto assets after the BoE regulations. According to banking regulators, cryptocurrencies bring risks that could affect the financial market that dominates the world. Cunliffe, who chairs the position of vi-ruler in the central entity, says that if cryptos are given priority, their market volatility could easily affect the economy.

Cunliffe insists that when crypto assets are linked to the traditional financial market, an imbalance in the price of each token could affect the economy. However, the bank admits that very few people in England and the UK generally use cryptocurrencies. At least 2 million citizens are expected to trade cryptocurrencies in the country in Europe.

Regulations against cryptocurrencies in England

England has been the center of crypto regulations in Europe, mainly because of the Bank of England actions. For the BoE, crypto assets have a volatile price, showing their reliability is minimal. Regulators also agree that cryptocurrencies unbalance the economy, finance the terrorist, and money laundering.

Cunliffe hints that crypto regulations should be followed to prevent any attack on the financial scheme that everyone in the country benefits from. Among other announcements, the BoE agency showed a report indicating that the financial market returned to its invariable limits after almost two years of lockdown by Covid-19 in the country.

Regarding the crypto-market, the bearish streak continues, leaving Bitcoin, the cryptocurrency with the largest capitalization, to trade at $47,452 while losing 0.95 percent in the last 24 hours. However, Solana’s token ascended in decentralized commerce with a rise of 0.59 percent in 24 hours, which has pushed it to its current price of $161.33.

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