Bank of England’s deputy governor for financial stability, Sir Jon Cunliffe, says the collapse of cryptocurrency exchange FTX has highlighted the urgent need for tighter crypto regulation. “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 destabilizing impact,” said the deputy governor.

Bank of England (BoE), the UK’s central bank, warned consumers about the risks of using decentralized finance (<a target="_blank" href="https://cryptonews.com/tags/defi">DeFi</a>) protocols shortly after the crypto exchange FTX collapsed. The warning from the central bank was given in a <a target="_blank" href="https://www.bankofengland.co.uk/speech/2022/november/-/media/8331cfac3f284b4c94567d24912b0bba.ashx">speech</a> by Deputy Governor of the Bank of England, Jon Cunliffe. According to Cunliffe, there are three reasons why it is essential to regulate crypto-related activities now.

While speaking at a conference in Coventry, Sir Jon Cunliffe, the Deputy Governor of the Bank of England, weighed in on regulations for cryptocurrency. The official initially intended to speak about stablecoins and Central Bank Digital Currency (CBDC). Instead, he shared his thoughts on the broader crypto industry after recent events.