ByISBuzz Staff Editorial Team , Information Security Buzz | Nov 21, 2022 06:41 am PST
Bank of England Deputy Governor Jon Cunliffe today remarked that the implosion of cryptocurrency exchange FTX shows the need to regulate the crypto world, and to bring in these controls as soon as possible.
It is the global financial landscape that has adversely impacted crypto thus far, even absent the current self-implosion conditions. Liquidity pressures, uncertain economic outlook and rising inflation lead to investors withdrawing from ‘risky’ assets – undermining the proposition that Bitcoin is a shelter from economic crises.
There is no doubt a deepening link between crypto and the wider economy; with high profile VC funds having lost significant investments as a result of the FTX collapse.
Industry and the professional service sector have been shouting for regulation that incentivises crypto businesses to establish in the UK (and other highly regulated jurisdictions). The regulator’s fear of getting it wrong with an FTX style scandal happening on their turf is one of the primary reasons for their paralysis. The FCA appears more concerned with how they’re perceived than protecting the consumer.