Sir John Cunliffe, who happens to be the well-respected governor of the Bank of England made a massive statement that made waves in the English crypto community. In his statement, he claimed that regulating crypto is more important than ever these days and is an urgent matter. He further added that while crypto-related technologies are not a risk for financial stability currently, things could change down the line.
He stated this because he believes there are plenty of legitimate reasons to believe things could change in the future. John said that a crypto collapse in the future could have a devastating impact on the world economy and could spread in the global market like a contagious virus. A massive fall in crypto asset values could well and truly cause investors, especially those with debts to look for cash to make payments.
It is clear to see where the Bank of England’s governor is coming from. That being said, this does not mean in any way that Sir John thinks that crypto is bad or has made a poor impact. Instead, he just thinks that regulating it could help minimize scams and various fraudulent activities. For those who don’t know, the crypto world has been full of hacks and scams for many years. Despite the massive profits that people earn, there have been occasions where people have fallen prey to hacks and lost their profits.
This is precisely why a large number of organizations believe that regulating crypto is the only sensible way to move forward. While there is no denying that getting regulation into full effect can take a great deal of time, it will still be helpful for investors. A large number of reliable crypto experts have been claiming that investments could double or even become triple within a matter of years if investors felt safe.
Because of the various incidents happening in the crypto space, a large number of enthusiasts and investors show a great deal of reluctance. However, this could change significantly and one of the reasons behind it is the large number of governments taking action to regulate crypto. Needless to say, things could change significantly within a short period, improving the crypto landscape/
As a matter of fact, there have been several countries that have noted a monumental improvement in their crypto scene. This is all thanks to the regulations that governments have been imposing for the past few months. As soon as regulatory authorities spot any red flags, they soon notify crypto exchanges about it, which results in prompt action. Not adhering by the guidelines and regulations often results in bans and massive penalties.