BoE: Without Proper Regulation, Crypto Assets Are At Major Risk.
16 Jul 2022, 08:00
BoE: Without Proper Regulation, Crypto Assets Are At Major Risk
The Bank of England, in a report, has made claims that the sharp volatility of crypto assets gives the asset class the potential to pose a “systemic risk” to financial stability within the country. It believes this potential will be especially pronounced should the relationship between crypto and the general financial system continue growing.
The BoE thinks systemic risks could emerge if crypto activities are left unchecked.In its Financial Stability Report of July 2022, compiled and published by the Financial Policy Committee, the Bank of England released an elaborate account, identifying current and potential risks to the country’s financial stability.
In the report, the BoE noted the volatility of crypto assets, including stablecoins which it said have recently lost investors’ confidence following the de-pegging wave that hit some notable stablecoins after the Terraform’s UST collapse that imbued a form of commotion within the crypto space. It also noted recent unfortunate events that have hit the crypto space.