A member of the Bank of England’s rate setting committee has warned the possibility of crypto assets derailing the financial system is ramping up.
“The point at which [crypto assets] pose a risk is getting closer. I think regulators and legislators need to think hard about that,” Jon Cunliffe, deputy governor of financial stability at the Old Lady, told BBC Radio 4’s Today Programme this morning.
“On the regulation on the management of crypto assets… we need to start working to ensure the regulation is there,” Cunliffe added.
His remarks come amid growing concerns over younger investors being duped into spending vast sums of money on highly volatile crypto assets.
The Financial Conduct Authority estimates around three quarters of young investors’ decide to buy highly volatile financial assets due to competition among friends and FOMO.
Social media influencers have been pinpointed as perpetuating the scale of potential crypto scams consumers are exposed to.
Kim Kardashian recently sent out a paid post to her around 250m Instagram followers urging them to buy a crypto token called Ethereum Max.
Kardashian did not note the token was created just a month before the post. Signposting that the post was a paid advertisement was minimal.
Bitcoin, the world’s most famous cryptocurrency, recently scaled to fresh record highs, approaching $70,000 per token.