Bank of England Pushes for Crypto Regulation ‘Before Potential Problems’

The other day, Bank of England Deputy Governor Jon Cunliffe gave an interview regarding the crypto regulation. According to him, due to the growing integration of cryptocurrencies into the traditional financial system, there is a need for a regulatory framework “before we could have a potential systemic problem.”
Cunliffe states that regulation is primarily aimed at protecting retail investors and the financial system as a whole. Meanwhile, the UK government is already considering relevant steps.
«We had banks and investment funds and others who wanted to invest in it [cryptocurrencies] and I think we should think about regulation before it [digital assets] becomes integrated with the financial system and before we could have a potential systemic problem,» Cunliffe elaborated.
Recall that earlier Bank of England Deputy Governor proposed to extend existing financial regulations to digital assets by analogy to traditional financial assets. In addition, he noted that decentralized protocols could not yet provide any effective risk management.
Meanwhile, in December, it was reported that the Cabinet of the United Kingdom would unveil new rules for the digital asset industry.