The Bank of England will push for tighter rules as institutions embrace crypto, official says


The Bank of England wants stronger rules for crypto assets on an international scale as banks and institutional investors deepen their involvement, according to an official at the UK central bank.

Sarah Breeden, who works as Executive Director for Financial Stability Strategy and Risk, told The Times in an interview that the focus on international coordination among central bank is a reflection of the difficulty in obtaining data on institutional crypto holdings. 

“This is not something the UK can solve all on its own," Breeden told the Times. 

Breeden's comments are perhaps unsurprising, given that other central bank officials have, in recent months, called for closer international cooperation among 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. 

Tighter rules would "manage risks, encourage sustainable innovation and maintain broader trust and integrity in the financial system," the central bank said at the time.

Breeden reportedly highlighted work being done at the Financial Stability Board in this area. The FSB, formed in the wake of the financial crisis of the late 2000s, has spent several years developing a framework for crypto regulation and has similarly advocated for coordination among the world's regulatory bodies.

The BoE's plans also dovetail with efforts to more closely regulate the crypto industry within the UK as well.

“We don’t have a regulatory framework that’s fit for crypto-coins yet, but what we are doing is rolling our sleeves up and getting ready to build it,” Breeden told The Times.

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May 5, 2022, 3:17PM UTC