Amongst a large number of global states, the UK is one of them, which is seriously considering laying down of proper crypto regulation.
Many in the UK believe that regulation isn’t just beneficial for the crypto industry but also it is in UK’s interest as well.
One such person is the senior official of the Bank of England (BOE), Sir Jon Cunliffe, who is the Deputy Governor of BOE.
BOE’s Deputy Governor’s Take on Crypto
Cunliffe was recently interviewed by Sky News where he was particularly asked to share his personal views on crypto regulation.
He said that a sense of recognizing a unique industry and system has prevailed within BOE which is well-considered and well-thought-of.
He further explained that BOE is ready to fulfill its commitment to adopting new laws aimed at regulating domestic-level crypto trading.
Cunliffe also acknowledged that the failure of FTX has hence accelerated the need of laying down crypto regulations on an emergency basis.
He added that the UK regulators have always remained very vigilant and firm when it comes to the adoption of cryptocurrencies.
Their first response to cryptocurrencies was to not adopt them in the first place. However, technology has made its place among the locals and it will not be right to deprive them of an advantageous opportunity.
Therefore, it is important that they admit that the UK locals would want to have access to crypto. They have to make sure they make the adoption of crypto safer and streamlined for the locals.
Learning from Past Mistakes
He stated that a few years back, crypto trading wasn’t something that had the potential of destabilizing an economy but ‘now it is’.
He emphasized that incidents such as the FTX collapse happen as a reminder to concerned people so that they can align their strategies.
He insisted that the UK must lay down a regulatory framework immediately as the FTX disaster has endorsed the industry’s connection with the financial system.
Provide Regulations before the Merger
Cunliffe also shed some light upon the developing interest in the country where the institutional sector is keen on investing in crypto.
He acknowledged that BOE has to immediately deal with this growing interest. He warned that regulation is put in place much before the completion of a crypto merger into traditional financial systems.
He is of the view that timely action would save the UK from any potential risks against any systematic issues and problems.
Cunliffe rejected the notion that crypto trading should be banned altogether. Instead, he advised that the ban would not give any solution because the only solution lies in the regulation.
He also warned that many cryptocurrencies in the industry are highly speculative. He said that investing in them is like gambling on something with zero value.
Cunliffe also explained that the crypto industry has influencers as others do. However, many of these influencers are convincing others to gamble on zero-value currencies.
He advised that people must avoid getting into that and instead look up for safe investment opportunities.
Cunliffe also spoke about crypto being used as means of causing corruption or money laundering. He argued that every industry has some negative sides and the crypto industry is no exception.
He rejected that blaming the crypto industry entirely for laundering and corruption is not the way in which a wise man thinks.
However, he kept on insisting that crypto regulation is the ultimate way forward without which the UK cannot move forward.
Regulation Would Bring Financial Stability
He even went on to state that regulation of crypto is in the interest of the crypto community and industry. He further opined that regulations wouldn’t only benefit the industry but instead, they would immensely benefit the UK.
Cunliffe argued that the world has realized that to deal with economic crunch and instability, there is no harm in embracing alternate measures. He advised that crypto regulation would bring financial stability to the UK’s economy.