Bank Of England Calls For Tighter Crypto Regulation As Adoption Grows

The Bank of England calls for tighter rules for crypto and digital assets on an international scale as banks and institutional investors deepen their involvement, says an official at the central bank of the island nation.

Sarah Breeden, the Executive Director for Financial Stability Strategy and Risk, said in an interview with The Times that the focus on international coordination among central bank is a reflection of the difficulty in obtaining data on institutional crypto holdings. She said:

“This is not something the UK can solve all on its own.”

Breeden’s comments might come as somewhat obvious, given that recently other central bank officials have called for closer international cooperation between regulators, especially those in the banking sector. Breeden’s comments had a very similar tone to those included in a Bank of England financial stability report released last week. 

According to the report, tighter rules would “manage risks, encourage sustainable innovation and maintain broader trust and integrity in the financial system.”

According to Breeden a lot of work has been done at the Financial Stability Board (FSB) regarding crypto regulation. The FSB, which was formed in the late 2000s, has several years developed a framework for crypto regulation and has been an advocate for coordination of international regulatory bodies.

The Bank of England also plans for more closely regulating the crypto industry within the United Kingdom as well.

Breeden told The Times:

“We don’t have a regulatory framework that’s fit for crypto-coins yet, but what we are doing is rolling our sleeves up and getting ready to build it.”