Data Hard to Find, International Co-operation Required to Frame Crypto Rules: Bank of England
The Bank of England on Sunday reported that an international co-operation is required to ramp up the talks regarding crypto rules and the crypto risks to the global financial system as the mass adoption of crypto by various financial institutions is on the rise.
In a report published on Sunday, Bank of England stated that it is becoming highly challenging to gather data on institutional exposure to crypto and it requires an international co-operation to analyze the crypto risks to the global financial system. There is an extensive growth in the crypto service offerings (trading and custody) by various banks around the world and requires global rules that can protect the global financial system.
Sarah Breeden, executive director for financial stability strategy and risk at Bank of England said that UK cannot alone achieve the required data gathering and a co-operation from the G-20 countries is the need of the hour so global rules can be formulated for crypto offerings by the banks as they pose extensive risks to the global financial systems.
The crypto adoption and offerings by the banks throughout the world has been on a rapid rise and this fast adoption can create a number of vulnerabilities in the existing global financial structure, the report claimed.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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