The Bank of England urged to regulate cryptocurrencies "before problems arise"

Cryptocurrencies are increasingly being integrated into the traditional financial system, so the regulatory framework is needed before "systemic problems" arise. This was stated by the Deputy governor of the Bank of England, John Cunliffe, in a conversation with Sky News.

According to him, regulation is necessary to protect retail investors and the financial system as a whole. In particular, the British authorities are already considering steps in this direction.

"We had banks, investment funds and others who wanted to invest in it [cryptocurrencies]. I think we should think about regulation before [digital assets] are integrated into the financial system and before we have potential problems," Cunliffe stressed.

Earlier, the deputy governor of the Bank of England proposed to regulate digital assets by analogy with traditional finance. He also pointed out that decentralized protocols do not yet provide an effective way to manage risks.

Recall that in December it became known that the UK Cabinet of Ministers will introduce new rules for working in the digital asset industry.