Bank of England deems crypto “too dangerous”, calls for regulations as market cap touches $770 billion

• Bank of England’s deputy governor stated the central bank is looking forward to crypto regulation.
• Earlier last month, following the downfall of FTX, the deputy governor became more vocal about enacting regulations.
• The crypto market has barely moved in the last three days as the market value of all cryptocurrencies remains stuck under $800 billion.

The crypto market is not making much headway when it comes to recovery since the FTX collapse. Consequently, the fear of volatility has intensified among authorities, which refrain from looking into the use cases of cryptocurrencies. One such entity is the Bank of England (BoE).

Bank of England wants regulation

The Bank of England is planning on doubling down in its efforts to improve regulation in the country when it comes to cryptocurrencies. The collapse of FTX was cited as the reason behind the revival of this discussion, as the exchange’s downfall showcases the dangers of the crypto market.

In line with the same, the Deputy Governor of the central bank, Jon Cunliffe, in an interview on Thursday, stated,

“We should think about regulation before it becomes integrated with the financial system and before we could have a potential systemic problem.”

Cunliffe has been one of the most consistently vocal officials when it comes to criticizing cryptocurrencies. Since the fall of FTX, the BoE Deputy Governor has been demanding a regulatory framework as he believes that it would be needed to support a stable crypto system.

Crypto market makes no significant move

Since the FTX collapse and the plunge in FTT price, the crypto market has been attempting to retrace its steps back to $1 trillion. This is what the crypto market was valued before the FTT price crash triggered a market-wide correction, and cryptocurrencies lost over $255 billion in three days from November 6.

Crypto market total capitalization

Since this 25% drop, the crypto market has attempted multiple recoveries but to no avail. The most recent failed attempt was on December 14, when about $75 billion was wiped out of the market. 

Thus, regulations in the crypto market, according to supporters, might be able to curb such situations. However, stuck at $774 billion, the crypto market will need more than just regulations to breach the $800 billion mark.

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