Crypto Needs Regulation Before It Becomes ‘a Lot Larger’ – Regulation Bitcoin News

Bank of Canada’s senior deputy governor says the central bank does not want to wait until crypto “gets a lot larger” before it brings regulatory controls in place. “This is an area that is still small, but it’s growing really rapidly,” the official said.

Bank of Canada’s Official Stresses the Importance of Crypto Regulation

In an interview on Thursday with Reuters, Carolyn Rogers, Senior Deputy Governor of Bank of Canada spoke about cryptocurrency regulation.

“This is an area that is still small, but it’s growing really rapidly. And it is largely unregulated,” she explained, adding:

We don’t want to wait until it gets a lot larger before we bring regulatory controls in place.

The total crypto market capitalization has fallen to below $1 trillion following Monday’s sell-off. The total crypto market capitalization is estimated at $918 billion according to Bitcoin.com Markets data as of this writing

According to Canada’s central bank, the share of Canadians who own bitcoin more than doubled to 13% in 2021 from 5% in 2020.

“Like any asset that’s jumping around in price, people see an opportunity for quick gains,” Rogers added, elaborating:

We are concerned that they might not be aware of the potential risks. They may not even understand that it’s not a regulated area.

According to the Bank of Canada’s senior deputy governor, crypto must be regulated. “These are somewhat like banking assets, somewhat like capital markets,” she described.

Rogers acknowledged that there were challenges and stated:

One of the challenges is to figure out how do they fit in the current regime, and if they don’t fit, how do we adjust the regime so that they will fit.

What do you think about the comments by Bank of Canada’s senior deputy governor about crypto? Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.