Crypto rules needed after FTX collapse, says Bank of England
Better regulations are needed to protect the financial system after the collapse of the FTX cryptocurrency exchange, a senior Bank of England official has said.
The value of Bitcoin, the world's largest digital currency, has dived by almost 70% in the last year. "The experience in other areas of digitalisation has demonstrated the difficulty of retrofitting regulation on new technologies and new business models after they have reached systemic scale," he told an audience at a Warwick Business School event.
It's true that FTX had collected dozens of permissions to operate in many countries and to offer many different crypto services.Every time there is a major crisis in crypto the cries for regulation grow, but it's the type of regulation that matters. The company's filings have revealed that more than one million people and businesses could be owed money following its collapse.
Mr Bankman-Fried was one of the crypto world's most high-profile personalities, with the 30-year-old becoming a billionaire in 2021.It spent millions on advertising, including during the Superbowl, and last year it acquired the naming rights for the Miami Heat NBA team's arena.
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