International cooperation is required to gather the information needed to evaluate crypto risks to the global financial system.
The Bank of England is facing challenges in finding the information it needs on institutional exposure to crypto, and plans to ramp up the pace of international talks on establishing a regulatory regime for the assets, the Sunday Times reported.
- The growing number of banks offering crypto trading and custody for clients requires global rules to protect the financial system, according to Sarah Breeden, the BOE’s executive director for financial stability strategy and risk, the newspaper said.
- Gathering the requisite data is not something the U.K. can achieve alone, she said. It will need cooperation through the Financial Stability Board, a G-20 organization that makes recommendations regarding the stability of the global financial system.
- The BOE has repeatedly said, most recently just last week, that crypto holdings in the U.K. do not currently pose a threat to the financial system. It expressed concern, however, that the pace of growth means they could become more dangerous as they become increasingly linked to the wider financial network.