FTX Collapse Highlights Need for Prudent Regulation in the UK

The collapse of FTX has prompted calls for more stringent regulation of cryptocurrency markets in the United Kingdom.

Bank of England Deputy Governor Sir Jon Cunliffe argued that investors in the country need more protection and that a regulatory framework is needed to ensure that cryptocurrency markets offer the same level of consumer protection and integrity as traditional financial markets.

Cunliffe pointed to increased interest in cryptocurrency markets from both financial institutions and retail investors as a reason for the need for greater regulatory oversight.

He also cited the collapse of FTX as an example of a situation where existing regulatory structures in traditional finance may have provided protection to investors who lost money.

Some have suggested that investors in the U.K. should have access to a regulated environment that prevents the kind of losses seen in the collapse of FTX, similar to the gambling sector.