March 25, 2022
By Priyanka Shetty
The Bank of England has begun working on Britain’s first regulatory framework for crypto assets, pointing out risks to financial stability from cryptos if they remain unregulated, Reuters reported.
Here is what you need to know:
- Cryptoassets have come under the regulatory spotlight after the Russia-Ukraine conflict followed by sanctions on Russia.
- Cryptoassets, such as bitcoin and ether, are largely unregulated as they fall outside regulations and a change of law would be needed to bring them inside the full scope of UK securities rules.
- The BoE’s Financial Policy Committee said in a statement on Thursday that direct risks to financial stability from crypto were currently limited, but if the recent pace of growth is maintained, there would be risks in the future.
About the author
Based in Bengaluru, Priyanka Shetty is a freelance writer for Blockchain Asset Review.