The Bank of England’s deputy governor for financial stability, Jon Cunliffe says that regulators need to “get on with the job” of bringing the use of crypto technologies within the “regulatory perimeter.” On Tuesday, Cunliffe gave a speech at the home of the British High Commissioner in Singapore, where he discussed the current “crypto winter,” a period of declining cryptocurrency prices that last for a considerable time. He continued that technology can alter how risks are managed and distributed, but it cannot eradicate them, adding that there are inherent risks in finance. Crypto Sector And The Conventional Financial System Cunliffe believes that financial assets that lack inherent value are solely worth what the subsequent buyer is willing to pay. As a result, they are prone to collapse, highly sentimental, and volatile by nature. The market capitalization of cryptocurrencies decreased from $3 trillion at its high in November to below $1 trillion as a result of investor withdrawals amid a more significant sell-off in risk assets. Cunliffe said he feels the lines separating the crypto sector and the conventional financial system would “increasingly get blurred” even though cryptocurrencies may not yet be “integrated enough” into the rest of the financial system to pose an “immediate systemic danger.” Same Risk, Same Governing Consequence Jon Cunliffe stated that expanding a regulatory framework to include crypto “must be an...
