Borba kriptovaluta možda neće biti gotova, upozorava BOE

The Bank of England has also underscored the need for enhanced regulatory and law enforcement frameworks.

BOE Warns Crypto Could Slide Further 

The Bank of England has warned that the pain for both traditional and crypto markets may not be over.

U izvještaj published Tuesday, the central bank’s Financial Policy Committee said that the worsening economic outlook had caused extreme volatility in the markets in recent months, leading to sharp declines in the prices of risk-on assets like equities and cryptocurrencies. According to the report, the crypto downturn has exposed several vulnerabilities in the market that do not pose risks to overall financial stability but nevertheless highlight the need for stricter regulations and enforcement. An excerpt read:

“Unutar tržišta kriptoaktive otkriven je niz ranjivosti sličnih onima koje su bile izložene prošlim epizodama nestabilnosti u tradicionalnijim dijelovima finansijskog sistema. To uključuje neusklađenosti likvidnosti koje dovode do dinamike pokretanja i rasprodaje, kao i poništavanje pozicija uz pomoć poluge i pojačavanje pada cijena. Povjerenje investitora u sposobnost određenih takozvanih “stabilnih coin-a” da održe svoje fiksacije značajno je oslabljeno, posebno onih koji nemaju nikakvu ili rizičniju podršku i imaju manju transparentnost. Ovi događaji nisu predstavljali rizik za ukupnu finansijsku stabilnost.”

The BOE further explained that if crypto’s popularity and correlation with the traditional financial system continued to grow, systemic risks for the broader economy could emerge. According to the central bank, this crta the need for “enhanced regulatory and law enforcement frameworks” addressing the developments in these markets and activities. 

While the BOE called for stricter crypto regulation, it didn’t suggest any new rules for traditional assets like stocks. Notably, the stock market has lost over $11 trillion since the beginning of the year, around 3.6 times the total value of the cryptocurrency market at its peak. 

The stocks of many so-called blue-chip technology companies, including Meta, Netflix, PayPal, and Shopify, have registered brutal declines of 52.7%, 69.8%, 63.3%, and 77% on a year-to-date basis without attracting any regulatory attention. Bitcoin is down about 55% over the same period.

Despite the already significant market correction, the BOE reiterated that the pain for equities and cryptocurrencies may not be over. “Given downside risks from additional supply shocks, faster-than-expected monetary policy tightening and slower-than-expected economic growth, risky asset prices remain vulnerable to further sharp adjustments,” it said.

Otkrivanje: U vrijeme pisanja, autor ovog članka je posjedovao ETH i nekoliko drugih kriptovaluta.