Bank of England to push for tougher rules as institutions embrace crypto, official says

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The Bank of England wants tougher rules for crypto assets internationally as banks and institutional investors deepen their involvement, according to a UK central bank official.

Sarah Breeden, who works as the executive director of financial stability and risk strategy, told The Times in an interview that the focus on international coordination among central banks reflects the difficulty in obtaining data on institutional holdings in cryptography.

“It’s not something the UK can fix on its own,” Breeden told The Times.

Breeden’s comments are perhaps not surprising, given that other central bank officials have in recent months called for closer international cooperation between regulators, including those focused on the banking sector. Indeed, Breeden’s comments echoed those included in a financial stability report released by the BoE last week.

Stricter rules would “manage risk, encourage sustainable innovation, and maintain broader trust and integrity in the financial system,” the central bank said at the time.

Breeden reportedly highlighted the work underway at the Financial Stability Board in this area. The FSB, formed in the wake of the financial crisis of the late 2000s, spent several years developing a regulatory framework for crypto and also advocated for coordination among regulators around the world.

The BoE’s plans also dovetail with efforts to more tightly regulate the crypto industry in the UK as well.

“We don’t have a proper regulatory framework for cryptocurrencies yet, but what we’re doing is rolling up our sleeves and getting ready to build it,” Breeden told The Times.

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