BoE's Cunliffe: FTX collapse demonstrates need for crypto regulation

'Most spectacular failure to date'

The collapse of FTX provides a “compelling demonstration” of why greater regulation of the cryptoassets space is necessary, said Jon Cunliffe, deputy governor of the Bank of England, in a speech yesterday (21 November).

Describing the collapse as "probably the largest - and certainly the most spectacular - failure to date in the crypto ecosystem", Cunliffe also said the event had pushed the central bank towards developing a digital currency. FTX's failure encapsulated the "general themes" present in many poor financial services companies, the first being that "technology in and of itself does not change the need for transparency", according to Cunliffe. He argued that regulation allows firms to be properly constrained with transparency, while also noting the confusingly interlinked nature of the FTX ...