- Devising a regulatory regime for cryptoassets in the UK, the US, or in other major jurisdictions, will be an incredibly complex process that will take considerable time to implement.
In October 2021, one of the deputy governors of the Bank of England (BoE), Jon Cunliffe, gave a speech in which he identified the ‘justifiable and growing concerns around investor protection, law enforcement and market integrity’ in relation to cryptocurrencies. Mr Cunliffe then proceeded to outline ‘a plausible scenario’ which involved ‘a massive collapse in the price of unbacked cryptoassets’.
To mitigate against such an event, the deputy governor referenced calls made by securities regulators on both sides of the Atlantic such as the CEO of the Financial Conduct Authority and the chair of the US Securities and Exchange Commission—that there is a need for regulation as a ‘matter of urgency’.
Similar warnings have been issued by prominent US figures. Among them the Treasury Secretary, Janet Yellen,
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