{"id":2856,"date":"2022-03-25T04:52:46","date_gmt":"2022-03-25T04:52:46","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=2856"},"modified":"2022-03-25T04:52:47","modified_gmt":"2022-03-25T04:52:47","slug":"report-bank-of-england-is-working-on-crypto-regulation-framework","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=2856","title":{"rendered":"Report: Bank of England is working on crypto regulation 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>The Bank of England (BoE), the United Kingdom\u2019s central bank, has reportedly begun developing a new framework aimed at bringing cryptocurrencies and stablecoins into various existing regulatory fields.<\/p>\n<p>According to a report published by <i>Reuters<\/i> today, the regulator\u2019s two main concerns are a possibility of Russia using crypto to evade sanctions (imposed on it following the invasion of Ukraine) as well as potential risks that digital assets may pose to the U.K.\u2019s financial stability in the future.<\/p>\n<p>\u201cWhile cryptoassets are unlikely to provide a feasible way to circumvent sanctions at scale currently, the possibility of such behavior underscores the importance of ensuring innovation in cryptoassets is accompanied by effective public policy frameworks to\u2026maintain broader trust and integrity in the financial system,\u201d the BoE\u2019s Financial Policy Committee (FPC) said in a statement.<\/p>\n<h2>Future-proofing UK\u2019s financial stability<\/h2>\n<p>Per the report, cryptocurrencies such as Bitcoin and Ethereum are mostly unregulated in the U.K. and fall outside of the so-called \u201cregulatory perimeter.\u201d At the same time, while the risks they present to the country\u2019s financial system are currently \u201climited,\u201d this may drastically change in the future, especially considering the pace at which the crypto industry is growing.<\/p>\n<p>To mitigate these potential risks, some changes to existing laws are required, the FPC noted, which would bring cryptocurrencies inside the jurisdiction of the U.K. securities rules.<\/p>\n<p>One of the ways this could be done is by regulating the sector based on \u201cequivalence,\u201d i.e. applying \u201ctraditional\u201d laws to crypto-related companies that perform similar functions to existing financial services.<\/p>\n<h2>Stablecoins can \u201cmeet expectations\u201d too<\/h2>\n<p>Meanwhile, a major stablecoin\u2014a digital asset pegged to a fiat currency\u2014could also \u201cmeet its expectations,\u201d the FPC added, even if such a token doesn\u2019t have a deposit guarantee scheme. However, a regulatory framework capable of mitigating various corresponding risks would need to be put in place.<\/p>\n<p>\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>Currently, the BoE and the Financial Conduct Authority plan to continue sketching the corresponding rules and will consult on potential \u201cregulatory models\u201d for systemic stablecoins in 2023.<\/p>\n<p>As <i>CryptoSlate<\/i> reported, the BoE has been concerned with numerous risks crypto presents to the established financial system for some time now. Last December, for example, the regulator\u2019s Deputy Governor for Financial Stability argued that cryptocurrencies are \u201cgrowing very fast\u201d and \u201ca big price correction could really affect other markets and affect established financial market players.\u201d<\/p>\n<p><h2>Get your daily recap of Bitcoin, DeFi, NFT and Web3 news from CryptoSlate<\/h2>\n<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><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:\/\/cryptoslate.com\/report-bank-of-england-is-working-on-crypto-regulation-framework\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of England (BoE), the United Kingdom\u2019s central bank, has reportedly begun developing a new framework aimed at bringing cryptocurrencies and stablecoins into various existing regulatory fields. According to a report published by Reuters today, the regulator\u2019s two main concerns are a possibility of Russia using crypto to evade sanctions (imposed on it following [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2857,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-2856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2856","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=2856"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2856\/revisions"}],"predecessor-version":[{"id":2858,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2856\/revisions\/2858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/2857"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}