Home » Money

BOE's Mark Carney Calls For Regulatory Approach Towards Cryptocurrencies

03 March, 2018, 05:35 | Author: Melinda Barton
  • Media playback is unsupported on your device                  Media caption Carney calls for crypto-currency regulation

Bank of England governor Mark Carney has called for the regulation of cryptocurrencies to protect the public and financial markets from a market that shows classic bubble tendencies. However, he does not believe that an outright cryptocurrency ban is the right approach.

Bitcoin hit nearly $20,000 (£14,500) in value in the run-up to Christmas, before crashing by more than half earlier this year, although it has since recovered to nearly $11,000. It is likely that the great success but finite nature of Bitcoin has spurred others to try to snag a portion of the market in various different ways, just to get on the virtual currency (VC) bandwagon before the oft-prophesized bubble burst occurs.

But while he added that they could pose a risk to financial stability in the future, he said they should not be banned: "A better path would be to regulate elements of the crypto-asset ecosystem".

Mark Carney, Governor of the Bank of England, in a panel to discuss central bank communication on November 14, 2017 in Frankfurt, Germany. Carney said that, in order to secure market integrity and for protecting the investors, crypto-asset exchanges should be exposed to the same set of rigorous standards as that of trade securities.

He said this was important as cryptocurrencies raise a "host of issues" around consumer and investor protection, market integrity, money laundering, terrorism financing, tax evasion, and the circumvention of capital controls and worldwide sanctions.


"This is in part because they are small relative to the financial system".

Of course, Bitcoin largely came about because Carney's financial system wasn't particularly "safe and sound" - at least, not for all those who lost their homes and jobs during the 2008 Financial Crisis, which ultimately saw many traditional financial institutions rewarded for actually failing.

"In his closing remarks, Carney said that the, ". core technology is already having an impact".

"I welcome Mr Carney's comments on blockchain, it's excellent that he can see value in this technology even if he has serious concerns over the rise of cryptocurrencies".

He also said cryptocurrencies should be regulated to protect the UK's financial system, while also calling on authorities and law enforcement agencies to tackle the use of digital currencies in crime, such as "money laundering and terrorist financing". But he warned that any isolation of cryptocurrencies risked stifling the development of the so-called distributed ledger technologies that underpin them.

Recommended:



Popular

Khloe Kardashian keen to spend bonding time with her sisters
The new episode featuring Kim telling her pregnant younger sister Khloé that TMZ had received a tip about her pregnancy. In the photos, the reality star could be seen wearing a blue midi dress with a cheetah coat and blue sneakers.

Airtel, Google Android Go 4G smartphones coming soon; Affordable JioPhone under threat
The smartphone named GM8 features a 5.7-inch HD+ display, 3GB or 4GB of RAM, 32GB or 64GB of storage and a Snapdragon 435 chipset. After months of rumors and leaks, all the biggest launches at MWC 2018 are done and a long list of smartphones are now official.

Amazon's Alexa Actually Lost Her Voice
A list of services that are experiencing outages has not yet been confirmed, but Amazon's Alexa seems to be effected. In some cases, those connected devices may not work at all, if Alexa is having trouble connecting to the internet.

North Korea May Be Aiding Syria's Deadly Gas Attacks On Civilians
Flames following a reported rocket attack is seen on the horizon in the rebel-held enclave of Eastern Ghouta on February 28, 2018. The materials include acid-resistant tiles, valves and pipes, the BBC said on Wednesday quoting the media reports .

Kylie Jenner's first baby photo shoot
In addition to celebrating the birth of their daughter, Kylie also hit Snapchat to show off her impressive post-birth body. KYLIE Jenner has finally shared with the world the first ever picture of her baby daughter, Stormi .

PSG confirm Neymar has fractured metatarsal
Real coach Zinedine Zidane is taking no pleasure from the news of Neymar's injury. "It is no joy at all, I do not like when players get injured and I am not happy with Neymar's injury".

ZTE brings premium features to its mid-range Blade line
Connectivity features include 4G VoLTE, Hybrid Dual-SIM, Wi-Fi 802.11 b/g/n, Bluetooth 4.2, GPS, 3.5 mm audio jack, and DTS audio. Included in that launch, we've got the new mid-range Blade V9 family, as well as the new Android Go-powered Tempo Go ...

Transgender male high school wrestler wins Texas girls title amid controversy
The University Interscholastic League requires student-athletes to participate under the sex noted on their birth certificate. After the video appeared online, fans have come to support Beggs via the medium of Twitter.

Greitens declares state of emergency for southern Missouri
Missouri's KMOV TV station published a report in January where a man said his now-former wife had an affair with Greitens in 2015. The Missouri Republican Party has announced their support for Greitens, saying this is nothing more than a political hit job.

Karachi Kings aim to change bad record against Peshawar Zalmi
It will be an interesting contest to see both sides in the contest comprising former and current global stars. Peshawar Zlami carried on the tradition to fly in less privileged kids to watch PSL matches in Dubai.