BoE Carney plans stricter UK cryptocurrency exchanges regulation. Mr. Carney has stated that he thinks that a more rigorous regulation framework is necessary in order to limit the illegal use of cryptocurrencies.
2 March, AtoZForex – The chief of the central bank of the UK has stated that the financial institution will push further with the efforts to fight the use of cryptocurrencies in illegal activities. According to some of the online reports, the Governor of the Bank of England (BoE), Mark Carney, believes that a stricter approach should be applied in regards to the cryptocurrency exchanges across the country.
BoE Carney Plans Stricter UK Cryptocurrency Exchanges Regulation
Mr. Carney has stated that he thinks that a more rigorous regulation framework is necessary in order to limit the illegal use of cryptocurrencies. He has mentioned the rising trend of cryptocurrency use in such illicit activities as money laundering and terrorism financing.
He has been quoted as saying:
“In my view, holding crypto-asset exchanges to the same rigorous standards as those that trade securities would address a major underlap in the regulatory approach.”
Furthermore, Mark Carney has stated that he does not believe that cryptocurrencies pose a significant risk to the modern financial system. Yet, he noted that such risks might grow as retail adoption of cryptocurrencies widen. Mr. Carney is also concerned about the traditional institutions being slow in regards to the improvements to their systems.
The remarks from the BoE Chief appear following a warning from the financial regulatory body of the UK, the Financial Conduct Authority (FCA).
Earlier in December 2017, the chief of the Financial Conduct Authority, Andrew Bailey, has stated “If you want to invest in bitcoin, be prepared to lose all your money.”
Mr. Bailey stated that Bitcoin, technically, a commodity rather than a fiat currency that has support from a central bank. He has highlighted that FCA did not set any regulation for this cryptocurrency. He stated that the UK watchdog has certain regulations in place that cover particular financial instruments Bitcoin refers to.
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