Bank of England’s Deputy Governor Jon Cunliffe commented on crypto’s market status, saying it is not a financial stability risk as it does not pose relevant competition to the traditional markets, yet.
He agreed with and appreciated crypto’s exponential growth however he clarified that it cannot beat the regulated market and he does not see it as a threat.
“The speculative boom in crypto is very noticeable but I don’t think it’s crossed the boundary into financial stability risk,” Cunliffe told CNBC.
Volatile Crypto is a Retailer’s choice, not an institutional preference
Cryptocurrency’s volatile nature leads to extreme outputs. The final product line either shoots North or drops down South. In the seven months of 2021, the crypto market has hiked as high as $2.5 trillion, during the first quarter, and has also faced unexpected losses of over $1 trillion in value since May. Bitcoin is standing at $32,500 today having lost nearly 50% from its ATH of near $65Kin April.
However, Cunliffe claimed that cryptocurrency’s popularity is not relevant to the traditional markets as it is only limited to retail investors and that institutions have yet not shown any collective interest.
“There are issues of investor protection here. These are highly speculative assets…But they’re not of the size that they would cause financial stability risk, and they’re not connected deeply into the standing financial system…Were we to start to see those links develop, were we to start to see it move out of retail more into wholesale and see the financial sector more exposed, then I think you might start to think about risk in that sense,”, Cunliffe told CNBC.
Regulators & Crypto Crackdown
Regardless of crypto’s wonder days, regulators still see endless wandering through the woods to find an unguaranteed treasure. For instance, the rapid and roaring Chinese Crypto crackdown was unsurprising to the traditional market players.
China’s regulators sought the crackdown as a cleanse against the unprotected, unsustainable, and unregulated cryptosystem. Furthermore, organizations like Binance, that is the world’s largest crypto trade and exchange platform, is also stuck in a series of regulatory trouble in several nations, including the UK.
Binance operations were banned by the Financial Conduct Authority (FCA) in the UK during June, instead of Binance’s failure of meeting the UK’s anti-money laundering requirements.
- Just In: Basel Committee Proposes Cap For Banks’ Bitcoin Holding
- Dogecoin (DOGE), Shiba Inu (SHIB) Show Strength, Here’s Why
- Breaking: Singapore Financial Regulator Reprimands Three Arrows Capital
- Ethereum Exchange Supply Spikes, ETH At A Risk of Correcting to $700 And Below
- Bitcoin Prices Can Reach This Level By End Of 2022; Reveals Deutsche Bank
- NFT Marketplace OpenSea Flags Data Breach, Here’s What Was Leaked
- EU Passes A Bill to Trace the Flow of Bitcoin & Crypto Assets In Regulatory Tightening Measures
- North Korea’s Lazarus Group Behind $100 Million Horizon Hack, Harmony Initiates Global Manhunt
- “People Mocking Saylor Will Regret”- Binance CEO
- Grayscale Initiates A Lawsuit Against the U.S. SEC Over Spot Bitcoin ETF Issues
- Polygon Price Analysis: V-top Reversal may Direct MATIC to $0.31 Support
- ETH Price Analysis: Is Ethereum Dropping To Three Digits?
- Bitcoin Price Analysis- BTC on Losing Streak Nearing $17800; Will it Hold?
- NEAR Price Analysis: Falling Prices Eye $3 Breakdown; Should Coin Holders Worry?
- SHIB Price Analysis: Sustained Selling may Lead $SHIB to $0.0000074?
- Sandbox Price Analysis: Crashing SAND Prices Warns 25% Downfall
- Solana Price Analysis: $36 Breakdown Teases SOL Price to Revisit $26
- Chainlink Price Analysis: Wedge Pattern could Lead LINK price below to $5
- AAVE Price Analysis: Buyers Need $76.6 Breakout to Trigger Bullish Recovery
- Apecoin Price Analysis: Rising APE Price Knockout Another Barrier; is $6 Next?