The recent collapse of cryptocurrency exchange FTX shows the urgent need to strictly regulate the cryptocurrency industry, Bank of England (BoE) Deputy Governor Jon Cunliffe warned Monday.
The official stressed that cryptocurrency trading must be subject to clear and precise rules by financial control agencies. Otherwise, unregulated digital money and companies will threaten the stability of the broader financial system, he said.
The fall of FTX, the world’s second-largest cryptocurrency trading platform by trading volume, which was owned by former billionaire San Barman-Fried, has deepened the crisis in the digital finance industry known as crypto winter.
In addition, this crisis revealed that there are serious flaws in the way that the main digital asset trading companies have been managing due to the lack of corporate controls and the misuse of client funds.
Greater Controls and Supervision
During a speech at a policy event, Cunliffe stressed the urgency of strengthening the supervision and control activities of DeFi companies before the stability of the global economy is seriously threatened.
According to the official, the digital finance sector is fortunately not yet…
