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Analyst Marcus Sotirio A UK-based digital asset broker GlobalBlock
Bitcoin is below its all-time high in 2017, which is concerned about bulls. The LUNA and UST crash caused a tragic transmission among other crypto companies. This is due to the unusually rapid withdrawal of liquidity from the crypto market.
In Bank of England financial stability report on Tuesday, The Bank’s Monetary Policy Committee (FPC) briefly described cryptocurrencies. The report states that while cryptocurrencies pose little imminent risk, it is important to monitor them as some vulnerabilities have been exposed during the recent market downturn. Banks have pointed out the following vulnerabilities:
“A liquidity mismatch leads to execution dynamics and fire sales, leveraged positions are rewound and price declines are amplified. Investing in the ability of certain so-called” stable coins “to maintain pegs. The trust in the house has been greatly weakened. This is especially true for those with no backing assets, high risk and low transparency. “
Unfortunately, British financial watchdog (FCA) is quite late. To date, only 33 cryptocurrency companies have been licensed in the UK. The UK’s current regulatory direction puts the UK at risk of lagging behind the United States, the European Union, and other regions.
Last week, domestic watchdogs from the United Kingdom and the United States attended the conference, recognizing the importance of teaming up to strengthen cryptographic regulatory results while supporting innovation.
This is a step in the right direction, but there is a lot to do if the UK wants to reach its goal of becoming a crypto global hub.
