Both local and international regulations are needed to manage risks associated with cryptocurrencies, the Financial Policy Committee (FPC) of the Bank of England said, according to a Monday (Oct. 11) report from The Daily Hodl.
While cryptocurrencies pose limited direct risks to the U.K. financial system, more oversight and law enforcement guidelines are needed in England, as well as globally, the FPC cautioned in the current issue of Financial Stability in Focus, according to the report.
While the U.K. and other countries race to put cryptocurrency regulations in place, the interest in digital assets continues to grow. According to recent PYMNTS data, as many as 58% of multinational firms are using cryptos to transact and/or hold on their balance sheets. About 10% of financial institutions (FIs) provide access to cryptos, and 73% of FIs plan to expand access to crypto-related products and services over the next 12 months.
In addition to the U.K., regulations for cryptocurrencies are being considered in the U.S. as well, as PYMNTS reported. The White House is mulling crypto oversight to focus on preventing ransomware and cybercrime, with President Biden looking at the possibility of an executive order.
In addition, the U.S. Department of Justice (DOJ) announced plans to step up enforcement efforts with the formation of the National Cryptocurrency Enforcement Team (NCET).
The DOJ said that crimes involving crypto vary a great deal, which means NCET will not only go after its own cases, but will also assist with current and future matters nationwide across the Criminal Division and in the U.S. Attorneys’ Offices. The NCET will also collaborate with other federal agencies, subject matter experts and other government law enforcement partners. The NCET will enforce laws related to criminal misuses of crypto with a deep look at crimes committed by digital currency exchanges, as well as infrastructure related to money laundering.