Bank of England: Crypto crashes show need for tougher rules

By KELVIN CHAN
AP Business Writer

LONDON (AP) — The Bank of England warns that recent cryptocurrency meltdowns that wiped out more then $2 trillion in value highlight the need for tougher financial regulations. Britain’s central bank said Tuesday that the crashes exposed vulnerabilities in the crypto markets reminiscent of previous bouts of financial turmoil. It said extreme volatility in the crypto markets, including so-called stablecoins, resulted in “fire sales” and amplified price falls. The bank worried that “systemic risks” would grow as cryptocurrencies become more intertwined with the wider financial system and called for “enhanced regulatory and law enforcement frameworks.” Officials across Europe have been moving to step up scrutiny of the cryptocurrency industry.