FTX Collapse Shows Need to Regulate Crypto, Says Bank of England

The implosion of cryptocurrency exchange FTX shows the need to bring the crypto world within the regulatory framework, Bank of England Deputy Governor Jon Cunliffe said on Monday, Reuters reported. FTX, which has filed for U.S. bankruptcy court protection, has said it owes its 50 biggest creditors nearly $3.1 billion. "While the crypto world, as was demonstrated during last year’s crypto winter and last week’s FTX implosion is not at present large enough or interconnected enough with mainstream finance to threaten the stability of the financial system, its links with mainstream finance have been developing rapidly," Cunliffe said. He added that FTX's woes highlighted the need for regulators to put in place tighter controls as quickly as possible. It did not have a licence to operate in Britain, yet had caused waves. "We should not wait until it is large and connected to develop the regulatory frameworks necessary to prevent a crypto shock that could have a much greater destabilising impact," Cunliffe said. Read more.