BoE official compares current crypto market regulations to 'dangerous planes'

According to Jon Cunliffe, regulators needed to accelerate efforts to find a place for crypto in current frameworks based on the principle of "equal risk, same regulatory result."

Jon Cunliffe, Deputy Governor for Financial Stability at the Bank of England, has called for a clear regulatory framework for crypto to address risks amid the recent market downturn.

In a written speech at the British High Commissioner's residence in Singapore on Tuesday, Cunliffe said regulators need to "get to work" incorporating crypto and blockchain into existing frameworks. He cited some events leading up to what some have called the upcoming crypto winter, including the price of Bitcoin (BTC) losing "70% of its value since November", the collapse of Terra (LUNA) - now called Terra Classic ( LUNC), stablecoins become independent of the US dollar and Three Arrows Capital files for bankruptcy in Singapore.

"The lesson we shouldn't take from this episode is that 'crypto' is kind of 'over' and we don't need to worry about it anymore," Cunliffe said. “Crypto technologies offer the prospect of substantial innovation and improvement in finance. But to be successful and sustainable, innovation must happen in a framework where risks are managed: people don't fly long in dangerous planes."

Jon Cunliffe lays out what he thinks are the lessons to be learned from the recent instability and losses in the crypto markets - the se -called "crypto winter". https://t.co/IoJ5YGaYln pic.twitter.com/7E6glOr4FW

According to the deputy governor, regulators should accelerate their efforts to find a place for cryptocurrencies...