Bank of England Deputy Governor, Sir Jon Cunliffe has warned that the risk of crypto trading is too great. In an exclusive interview with Sky News, he called for regulation to protect investors and the financial system. Cunliffe stated that the financial industry is experiencing a ‘casino’ of crypto trading and needs protection from it.

FTX collapse highlights need for regulatory oversight

The warning comes as FTX, a crypto trading platform, is facing collapse. The collapse of FTX highlights the risk of unregulated crypto trading and the need for regulatory oversight. This intervention is urgent so the financial system and investors are shielded from the volatility of crypto trading.

UK takes action to regulate crypto trading

The UK has been reviewing its regulation of crypto trading. The Financial Conduct Authority (FCA) has already had to declare Binance (one of the biggest crypto exchanges in the world) illegal. This move shows that the UK understands the volatility of crypto trading and is taking action. With further regulatory interventions, investors and the financial system can be protected from the downsides of this unregulated market.

Read More Here https://news.sky.com/story/ftx-collapse-shows-crypto-is-too-dangerous-not-to-regulate-bank-of-england-deputy-governor-says-12773169

The post Bank of England Deputy Governor warns of crypto dangers and calls for regulation appeared first on Bitcoin Times.

Read More Here https://www.standard.co.uk/business/business-news/crypto-trading-a-gamble-that-needs-regulation-bank-deputy-governor-says-b1049044.html

The post Regulating Crypto Trading: A Risky Venture or An Important Move for Financial Stability? appeared first on Bitcoin Times.

Following a successful rescue of Silicon Valley Bank’s UK subsidiary, the US operation to steady the banking sector and ensure American customers can access their cash has led to concerns. US regulators ensured all customers would be made whole, but the rapid and substantial decline in bank depositor and investor confidence following the collapse of SVB and Signature Bank along with a run on crypto-focused lender Silvergate has caused regulators to downgrade the outlook for the US banking system to negative from stable.

US regulators ensure all Silicon Valley Bank customers to be made whole

Unrealized securities losses are a headwind, and profitability will decline for many banks over the next year. While the US Treasury, Federal Reserve, and FDIC all announced that all depositors of SVB and Signature Bank will be made whole, fears remain that other corners of the financial system will break if the Fed keeps raising interest rates. Analysts warn that depositors and investors are still wary with banks in the US and smaller regional lenders have taken a battering.

UK operation a success despite fears about broader impact on UK banks

In contrast, HSBC swooped in with an eleventh-hour deal and SVB UK customers were largely able to access their cash again from Monday. The operations to rescue the bank’s UK subsidiary has been seen as a success. However, this has caused concerns about other banks in the UK and the potential risk to their customers, although one tech chief praised the operation, describing it as a fantastic example of private and public entities working together to resolve issues.

Read More Here https://www.cityam.com/silicon-valley-bank-how-has-the-us-rescue-differed-from-the-uk-and-is-it-a-bailout/

The post US rescue of Silicon Valley Bank raises concerns about global banking sector appeared first on Bitcoin Times.