The Bank of England has called for tougher regulation of the crypto market, just days after EU lawmakers agreed on rules for regulating the digital currency.
In its financial stability report, it said that the US$2tln nosedive in the value of crypto highlighted the vulnerabilities of the market, and as such required tougher law enforcement and regulation.
Cryptocurrency prices have fallen dramatically since November, when Bitcoin reached an all-time high of US$68,000, to currently trading at US$19,000.
“Extreme volatility” in recent months showed weakness in the market which led to fire sales, said the Bank and warned that further declines in prices could spark similar sell-offs.
Last week, the EU agreed on regulation for crypto assets which will come into force at the end of 2023. (Read more)