Now that FTX, the cryptocurrency exchange that claimed to be more regulated is desperate, regulation becomes an absolute necessity. For US Treasury Secretary Janet Yellen, regulation “ very careful would suit a sector as vulnerable as cryptos. On the England side, the BOE pleads for rules ” stricter “. In this way, we could avoid the repetition of the Terra and FTX fiascos.
BOE closely follows FTX and cryptos
In a speech Speaking at the Warwick Business Schools Gilmore Center Policy Forum conference on DeFi and digital currencies, Sir Jon Cunliffe returned to:
- recent developments in the cryptocurrency market;
- regulation of stablecoins;
- and the CBDC project developed by the Bank of England.
At the beginning of his speech, this senior BOE official addressed the case of FTX. In his opinion, it is the most important failure – and certainly the most spectacular of the history of cryptocurrencies.
” Unraveling what exactly happened at FTX will undoubtedly take a lot of time, effort and investigation by the relevant authorities. […] But we won’t know how this happened for some time, it seems that some general themes are very familiar to those who regulate and supervise conventional financial companies and instruments “, he added
Thus, Cunliffe proposed to ” developing the necessary regulatory frameworks to prevent such a fiasco from happening again. Besides, he acknowledged on occasion that Terra’s case is similar to FTX.
No regulation, goodbye protection
” In the absence of additional regulation, some stablecoins held to be used for payment purposes may not offer the same protections as central bank or commercial bank money. “, specified the Bank of England last July.
A few months earlier, Sir Jon Cunliffe prophesied ” tough times ahead for crypto “.
Moreover, well before the collapse of FTX, the Financial Conduct Authority warned Britons against the financial services or products of Sam Bankman-Fried’s company. ” You are unlikely to get your money back if things go wrong “. Unfortunately, things turned sour for FTX.
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