John Culifferthe, Deputy Governor of the Bank of England, has discouraged the use of crypto in the UK financial system. He announced earlier that although cryptocurrencies are increasingly supported within the UK financial system, they do not pose a significant threat.
However, he also has recommended that stronger regulations be enforced as digital currencies constantly develop.
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The bank stated in a post that there is a need to regulate cryptocurrency locally and internationally.
Earlier in July, the bank warned of the cryptocurrency overflow into traditional markets. He also spoke about the absorption of cryptocurrency by banks, institutional investors and payment operators for transactions.
Appreciation in the price of cryptocurrencies
As the prices of cryptocurrencies like Bitcoin, Ethereum, and Tron have skyrocketed over the past year. first half. Briefly, its value soared to $ 2.5 trillion. Guarantors of the Bitcoin protocol have vowed to provide another store of value while storers have struggled to give in, given its low interest rates.
The cryptocurrency market is currently facing a decline | Source: Crypto Total Market Cap on TradingView.com
On the contrary, cryptocurrencies have very high volatility, and the digital currency market has fallen by over $ 1 trillion in market value since May 2021. The price of Bitcoin has gone from an ATH price (all-time high) of nearly $ 65,000 in April this year to around $ 32,000 on Wednesday this week.
Financial Regulators Issue Warnings
Regulators have given frequent warnings about cryptocurrency. In particular, China has banned all digital transactions, declaring them illegal.
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However, Binance - the world's largest crypto exchange - was banned last month in the UK. Binance was doingpart of many exchanges that did not register with the financial regulator, as it could not meet anti-money laundering requirements.
Featured image from Pixabay, chart from TradingView.com