Bank of England Governor Calls for Cryptocurrency Regulations

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In a speech he gave about the future of money, the governor of the Bank of England, Mark Carney said that “Crypto-currencies such as Bitcoin should be regulated to crack down on illegal activities and protect the financial system”.

According to him, the inherent risks related to cryptocurrencies mean that a lot of people investing in the market could potentially lose their investments. He ads that, as of now, cryptocurrencies do not pose a threat for financial stability, but that the threat level could go up if more people continue to enter the parallel market.

“The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system,” Carney said in his speech.

Contrarily to other countries, who are on the side of completely banning the virtual currencies, Mr. Carney is leaning toward regulation rather than prohibition.

According to him, “a better path [than prohibition] would be to regulate elements of the crypto-asset ecosystem to combat illicit activities, promote market integrity, and protect the safety and soundness of the financial system.”

On a more positive tone, Carney proposes that the underlying technology behind cryptocurrencies (Blockchain) “could potentially catalyze innovations to serve the public better”.

He goes as far as saying that by allowing for peer-to-peer transactions, “they point the way to where the system has to go.”

About the creation of a digital currency for the central Bank, Carney  “has an open mind” but adds that it “shouldn’t be a solution in search of a problem or an effort of central bankers to be down with the kids”.

A representative of the CryptoUK group, which is composed of 7 large cryptocurrency-related companies such as Coinbase, eToro and cryptocompare, “This shouldn’t be viewed as a crackdown, but an opportunity to establish parameters that protect consumers while encouraging the biggest and best crypto-currency businesses to make the UK their home.”

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