LONDON, Oct 13 (Reuters) – Regulators must work shortly to place in place a set of rules for cryptocurrencies, given the sector’s fast progress and the time it takes to agree on new requirements, Bank of England Deputy Governor Jon Cunliffe mentioned on Wednesday.
“Regulators internationally and in many jurisdictions have begun the work. It needs to be pursued as a matter of urgency,” Cunliffe mentioned in a speech to the SIBOS convention.
Last week, international regulators proposed that the safeguards they apply to systemic clearing homes and fee methods also needs to be utilized to stablecoins, a kind of cryptocurrency sometimes backed by an asset or fiat forex.
Cunliffe, who helped to guide the work on the safeguards, mentioned it took two years to draft this measure, throughout which stablecoins have grown 16-fold.
Risks to monetary stability from the appliance of crypto applied sciences are presently restricted, however there are a quantity of “very good reasons” to assume that this won’t be the case for very for much longer, Cunliffe mentioned.
“Indeed, bringing the crypto world effectively within the regulatory perimeter will help ensure that the potentially very large benefits of the application of this technology to finance can flourish in a sustainable way,” he added.
Editing by David Goodman and Gareth Jones