{"id":2853,"date":"2022-03-25T03:15:32","date_gmt":"2022-03-25T03:15:32","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=2853"},"modified":"2022-03-25T03:15:33","modified_gmt":"2022-03-25T03:15:33","slug":"bank-of-england-says-crypto-assets-present-financial-stability-risks-bank-begins-sketching-regulatory-framework","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=2853","title":{"rendered":"Bank of England Says Crypto Assets \u2018Present Financial Stability Risks,\u2019 Bank Begins Sketching Regulatory Framework"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>The Bank of England has revealed that it is working on sketching a regulatory framework for crypto assets, according to statements stemming from the central bank\u2019s Financial Policy Committee on Thursday.<\/strong><\/p>\n<h2>BOE Stresses Crypto Assets Need Effective Public Policy Frameworks<\/h2>\n<p>On Thursday, the Bank of England (BOE) told the press that it is sketching out a regulatory framework for digital currencies. The BOE statements derive from the central bank\u2019s Financial Policy Committee (FPC) and the bank mentioned sanctions tied to the ongoing Russia-Ukraine war. In recent times, financial regulators and bureaucrats worldwide have been concerned that Russia could bypass economic sanctions via crypto assets.<\/p>\n<p>\u201cWhile crypto assets are unlikely to provide a feasible way to circumvent sanctions at scale currently, the possibility of such behaviour underscores the importance of ensuring innovation in crypto assets is accompanied by effective public policy frameworks to\u2026 maintain broader trust and integrity in the financial system,\u201d the BOE press statement mentioned on Thursday.<\/p>\n<h2>BOE Says Crypto Assets Could \u2018Present a Number of Financial Stability Risks,\u2019 Central Bank Is Concerned About Stablecoins<\/h2>\n<p>Members of the BOE have criticized the cryptocurrency economy for quite some time. In mid-November last year, the governor of the Bank of England, Andrew Bailey, raised concerns about El Salvador making bitcoin legal tender in the South American country. The following month in December, Sir Jon Cunliffe, the BOE\u2019s deputy governor for financial stability, said that crypto asset prices could drop to zero.<\/p>\n<p>The report on Thursday stemming from the FPC mentions financial stability. \u201cThe FPC continues to judge that direct risks to the stability of the UK financial system from crypto assets are currently limited, reflecting their limited size and interconnectedness with the wider financial system,\u201d the central bank\u2019s committee noted. The FPC further added:<\/p>\n<p>However, if the pace of growth seen in recent years continues, and as these assets become more interconnected with the wider financial system, crypto assets will present a number of financial stability risks in the future.<\/p>\n<p>Since the start of the Russia-Ukraine conflict, politicians worldwide have been either discussing, proposing, or even implementing legislation to research and regulate digital currencies. Statements from the FPC meeting on Thursday further indicate that the BOE wants crypto assets to fall under the same regulatory umbrella as traditional financial assets.<\/p>\n<p>In addition to sketching a regulatory framework for crypto assets, the FPC mentioned stablecoins, and that a major one without a reliable deposit guarantee could pose a threat to the financial system. \u201cThe FPC judges that a systemic stablecoin that is backed by a deposit with a commercial bank would introduce undesirable financial stability risks,\u201d the committee added.<\/p>\n<p>Tags in this story<\/p>\n<p>Andrew Bailey, Bank of England, bank of england crypto, BoE, Crypto regulation, Financial Policy Committee, Financial Policy Committee statements, financial stability risks, FPC, FPC meeting, Regulation, regulatory framework, russia sanctions, sanction evading, Sanctions, sir jon cunliffe, Stablecoin, Stablecoins, uk<\/p>\n<p><em><strong>What do you think about the Bank of England prepping to sketch out a regulatory framework for crypto assets? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n<p>Jamie Redman <\/p>\n<p class=\"article__body__author__info__about\">\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.<\/p>\n<p><i class=\"td-icon-font td-icon-twitter\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/bank-of-england-says-crypto-assets-present-financial-stability-risks-bank-begins-sketching-regulatory-framework\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of England has revealed that it is working on sketching a regulatory framework for crypto assets, according to statements stemming from the central bank\u2019s Financial Policy Committee on Thursday. BOE Stresses Crypto Assets Need Effective Public Policy Frameworks On Thursday, the Bank of England (BOE) told the press that it is sketching out [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2854,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-2853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2853"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2853\/revisions"}],"predecessor-version":[{"id":2855,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2853\/revisions\/2855"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/2854"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}