• Bank of England’s deputy governor stated the central bank is looking forward to crypto regulation.
  • Earlier last month, following the downfall of FTX, the deputy governor became more vocal about enacting regulations.
  • The crypto market has barely moved in the last three days as the market value of all cryptocurrencies remains stuck under $800 billion.

The crypto market is not making much headway when it comes to recovery since the FTX collapse. Consequently, the fear of volatility has intensified among authorities, which refrain from looking into the use cases of cryptocurrencies. One such entity is the Bank of England (BoE).

Bank of England wants regulation

The Bank of England is planning on doubling down in its efforts to improve regulation in the country when it comes to cryptocurrencies. The collapse of FTX was cited as the reason behind the revival of this discussion, as the exchange’s downfall showcases the dangers of the crypto market.

In line with the same, the Deputy Governor of the central bank, Jon Cunliffe, in an interview on Thursday, stated,

“We should think about regulation before it becomes integrated with the financial system and before we could have a potential systemic problem.”

Cunliffe has been one of the most consistently vocal officials when it comes to criticizing cryptocurrencies. Since the fall of FTX, the BoE Deputy Governor has been demanding a regulatory framework as he believes that it would be needed to support a stable crypto system.

Crypto market makes no significant move

Since the FTX collapse and the plunge in FTT price, the crypto market has been attempting to retrace its steps back to $1 trillion. This is what the crypto market was valued before the FTT price crash triggered a market-wide correction, and cryptocurrencies lost over $255 billion in three days from November 6.

Crypto market total capitalization

Crypto market total capitalization

Since this 25% drop, the crypto market has attempted multiple recoveries but to no avail. The most recent failed attempt was on December 14, when about $75 billion was wiped out of the market. 

Thus, regulations in the crypto market, according to supporters, might be able to curb such situations. However, stuck at $774 billion, the crypto market will need more than just regulations to breach the $800 billion mark.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Worldcoin price could rally 20% if Nvidia earnings beat estimates

Worldcoin price could rally 20% if Nvidia earnings beat estimates

Worldcoin price is likely to rally 20% after a consolidation. Nvidia's earnings report on Wednesday could catalyze an upside move for WLD. A daily candlestick close below $4.20 would invalidate the bullish thesis.

More Worldcoin News

Shiba Inu whales accumulate SHIB, 25% upswing likely Premium

Shiba Inu whales accumulate SHIB, 25% upswing likely

Shiba Inu price has breached a two-month consolidation, indicating its readiness to move. Investors can expect SHIB to rally 25% and tag the $0.0000315 resistance level.

More Shiba Inu News

Ethereum continues to rally as five potential spot ETH ETF issuers have already submitted amended filings

Ethereum continues to rally as five potential spot ETH ETF issuers have already submitted amended filings

Ethereum (ETH) continued its rally on Tuesday following the submission of amended filings on the Securities & Exchange Commission's (SEC) website by five potential spot ETH ETF issuers.

More Ethereum News

zkSync is allegedly planning token generation event and airdrop

zkSync is allegedly planning token generation event and airdrop

zkSync is allegedly planning a token generation event (TGE) this week and an airdrop launch in June. Matter Labs, the developers behind zkSync, decided to go fully decentralized.

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis