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Bank of England Urges Banks to Fund Bigger Scrutiny of Crypto

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Thu, 04/21/2022 - 15:21
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Yuri Molchan
Bank of England plans to hire more staff to study risks to do with the expanding cryptocurrency market
Bank of England Urges Banks to Fund Bigger Scrutiny of Crypto
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Bloomberg has reported that the central bank of England's (BOE) Prudental Regulation Authority intends to raise funds from local commercial banks in order to sponsor the hiring of more staff to oversee the crypto market and businesses operating in it.

The financial regulator wants to hire an extra hundred people, the source says, and it needs $419 million for that (321 million pounds sterling). It plans to raise the money this year through February of next year. That would be 8% more than it raised in 2021.

The regulator plans to set up a framework for crypto assets that would be used internationally.

The BOE has certain concerns that the crypto market, now valued at $1.7 trillion, keeps expanding and is already big enough to disrupt the traditional financial system in hard times. Besides, the regulator intends to keep working on a regulatory basis for stablecoins.

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Presently, the valuation of the crypto market comprises only 0.4% of the $469 trillion value of the world's financial system. However, in the BOE, they believe that the digital assets market is now bigger than the subprime mortgages that provoked a financial collapse in 2008, which Bitcoin was made as an answer to.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.