We must set cryptocurrency rules, admits Bank of England

City regulators have taken the first step towards creating a British rulebook for cryptocurrencies amid worries that the fast-growing $1.7 trillion market will eventually pose a threat to the wider financial system.

The Bank of England’s financial policy committee began to set out its thinking yesterday on how the cryptocurrency sector should be supervised in a move that potentially heralds a turning point for digital assets, which so far have been almost entirely unregulated.

Under the approach suggested by the Bank, crypto activities that mirror conventional financial services would be governed by existing City rules and standards.

“Where crypto technology is performing an equivalent economic function to one performed in the traditional financial sector, the FPC judges that this should take place within existing regulatory

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