Bank of England Governor Bailey: Banks Must Be 'Unusually Unique' With Cryptocurrencies

Andrew Bailey, Governor of the Bank of England, warned on the 13th that governing financial institutions such as banks should be "particularly sensitive to the holding of crypto assets in front of the people". The administration introduces new rules. "

Bailey told a press conference that future regulations on crypto assets (at the time the Bank of England preferred financial instruments like Bitcoin) would balance risk management with the need for innovation and support. competitive.

Image source: google

He was speaking after a meeting of the Bank of England (BoE) Financial Policy Committee (FPC):

The FPC said that no major UK bank has reported directly on crypto assets, but some banks have started offering a range of services, including printing or maintenance of cryptocurrency assets.

According to FPC, the cryptocurrency industry has grown rapidly, increasing tenfold since the start of 2020, reaching $ 2.6 trillion last month (equivalent to 1% of global financial assets). .

“At the moment, it may not be a financial security risk, but it could be,” Bailey said.

The Basel organization, formed by international financial regulators, demanded a multitude of crypto assets held by banks.

But, said Bailey, given the rules, we need to focus on the larger “non-bank” financial landscape outside of banking.

The FPC said that “in order to contribute to the development of emerging economies, it is necessary to strengthen the governance and governance processes of the country. and internationally, ”said the FPC.

The Bank of England believes that Bitcoin or other cryptocurrencies are in breach of the terms of the transaction and has reiterated its warnings that crypto assets are worthless and that thieving businesses can lose all of their money.

UK regulators estimate that 2.3 million UK adults have crypto assets similar to Bitcoin, but still only represent 0.1% of UK household financial assets.

The Financial Services Commission said last week that investments in cryptocurrencies should not be protected by the UK Financial Services Agency.