TL;DR Breakdown
- Bank of England wants International Corporation to monitor cryptocurrencies.
- England also working on tightening crypto regulation within the country.
- Financial Stability Board working on crypto regulatory framework for years now.
The Bank of England is set to prepare stricter rules to regulate cryptocurrencies as banks and other institutional investors continue to deepen their involvement with crypto assets.
Bank of England spoke on international coordination among central banks as a reflection the difficulty in obtaining data on institutional crypto holdings.
“This is not something the UK can solve all on its own, Sarah Breeden, who works as Executive Director for Financial Stability Strategy and Risk, told The Times in an interview.
While proposing corporation among central banks around the world, the Bank of England staff said that moves by banks to offer cryptocurrency trading and custody services to clients meant that global regulators needed to design rules to protect the financial system.
Why England wants international cooperation to regulate crypto
Beyond the BoE, other central banks have also called for cooperation towards properly regulating the crypto market. Breeden’s comments simply echoed those calls in a financial stability document authored by BoE.
Tighter rules would “manage risks, encourage sustainable innovation and maintain broader trust and integrity in the financial system,” the central bank said.
Beyond global crypto regulation, the BoE executive also spoke on closer regulation of the crypto industry within the UK.
“We don’t have a regulatory framework that’s fit for crypto-coins yet, but what we are doing is rolling our sleeves up and getting ready to build it,” Breeden said.
Financial Stability Board developing framework for crypto regulation
The BoE executive director highlighted that the Financial Stability Board has been doing some assignments regarding crypto regulation for a while now.
The board was formed in the wake of the financial crisis of the late 2000s. It has spent years developing a framework for crypto regulation and has similarly advocated for coordination among the world’s regulatory bodies.
