FTX shows need to regulate crypto before it gets big, says Bank of England | The Financial Express

FTX shows need to regulate crypto before it gets big, says Bank of England

FTX, which has filed for U.S. bankruptcy court protection, has said it owes its 50 biggest creditors nearly $3.1 billion.

FTX shows need to regulate crypto before it gets big, says Bank of England
He added that FTX hadn't been large or interconnected enough to threaten financial stability, but that regulators shouldn't wait to put in place tighter controls.

The implosion of cryptocurrency exchange ETX shows the need to bring the crypto world within the regulatory framework, Bank of England Deputy Governor Jon Cunliffe said on Monday.

FTX, which has filed for U.S. bankruptcy court protection, has said it owes its 50 biggest creditors nearly $3.1 billion.

“While the crypto world, as was demonstrated during last year’s crypto winter and last week’s FTX implosion is not at present large enough or interconnected enough with mainstream finance to threaten the stability of the financial system, its links with mainstream finance have been developing rapidly,” Cunliffe said.

He added that FTX hadn’t been large or interconnected enough to threaten financial stability, but that regulators shouldn’t wait to put in place tighter controls.

“We should not wait until it is large and connected to develop the regulatory frameworks necessary to prevent a crypto shock that could have a much greater destabilising impact, ” Cunliffe told a Warwick Business School event. 

Also Read: Collapsed FTX owes nearly USD 3.1 bln to top 50 creditors

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First published on: 21-11-2022 at 15:08 IST