FTX collapse calls for 'prudent regulation' in the UK

cointelegraph.com:

The collapse of FTX is being viewed as a cautionary tale and a precursor for more prudent regulation by public and private sector players in the United Kingdom.

Bank of England deputy governor Sir Jon Cunliffe made headlines ahead of the Christmas weekend in an interview with Sky News, outlining his belief that greater protection needs to be afforded to investors in the U.K. looking to gain exposure to cryptocurrency markets.

Cunliffe stressed that prospective cryptocurrency users and investors should have a structure to invest in the asset class that ensures similar consumer protection and integrity to conventional financial markets.

The deputy governor highlighted increased interest in cryptocurrency markets from financial institutions and retail users as a driving force behind the need for greater regulatory oversight in the country:

Cunliffe also used the collapse of FTX as an example where existing regulatory parameters guiding the traditional finance sector may have provided protection to users that have been left out of pocket.

Drawing parallels to the gambling sector in the U.K., Cunliffe said that investors should have access to a regulated environment that prevents losing access to funds as was the case in the collapse of FTX.

Related: UK crypto bill to restrict services from abroad: Report

Cointelegraph reached out to Mitch Mechigian, partner at investment firm Blockchain Coinvestors, for more insight into the current regulatory environment for the cryptocurrency and blockchain ecosystem in the U.K.

Based in London, Mechigian highlighted his view that financial institutions and regulators continue to see value in blockchain technology and digital assets in a post-Brexit British economy:

The collapse of FTX demonstrates