LONDON, Oct 13 (Businesshala) – Given the rapid development of the sector and the time it takes to agree new standards, regulators need to act quickly to put in place a set of rules for cryptocurrencies, the Bank of England said. Deputy Governor John Cunliffe said on Wednesday.
“Regulators have begun work internationally and in many jurisdictions. This needs to be pursued as a matter of urgency,” Cunliffe said in a speech at the SIBOS conference.
Last week, global regulators proposed that the security measures they apply to systemic clearinghouses and payment systems should also be applied to stablecoins, a type of cryptocurrency typically backed by an asset or fiat currency.
Cunliffe, who helped lead the work on the security measures, said it took two years to prepare the measure, during which stablecoins grew 16 times.
Cunliffe said that the risks to financial stability from the application of crypto technologies are currently limited, but there are many “very good reasons” to think that this may not happen for very long.
“Indeed, bringing the crypto world effectively within the regulatory ambit will help ensure that the potentially enormous benefits of applying this technology to finance can sustainably flourish,” he said.