The Bank of England has revealed that it is facing some challenges in ramping up crypto regulations. The financial institution is struggling to find crucial information that is needed to guide decisions about possible regulation.
The information required covers the institutional exposure to crypto and will provide the Bank of England with information about crypto use within businesses and other institutions. The Bank of England is currently trying to find this information with hopes to eventually ramp up the pace of talks on a regulatory regime. This was first reported by the Sunday Times.
The Bank of England’s calls for greater crypto regulation come as a growing number of banks around the globe are offering crypto trading and custody to their clients. This requires global rules to protect and stabilise the financial system, according to Sarah Breeden, the Bank of England’s executive director for financial stability strategy and risk.
Gathering the data that is needed for further investigations is not something that the UK can achieve alone. According to the executive director, the UK will need to cooperate with the financial stability board. The board is a G-20 organisation that makes recommendations regarding the stability of the global financial system.
Despite calls for tighter regulations, the Bank of England has repeatedly said that crypto holdings in the UK do not currently pose a threat to the financial system. However, with crypto holdings growing, some experts believe that this could change. The BOE says that the pace of growth that is currently happening in the crypto space means that crypto assets could become more dangerous as they become linked to the wider financial network.
As the Bank of England and other financial institutions gather the data needed to make further regulations, 2022 could be a big year for the crypto industry. For now, crypto offerings in England remain but holders should keep an eye out for restrictions in the future.
