FTX implosion shows need for crypto regulation - BofE's Cunliffe

finextra.com:

"FTX, along with a number of other centralised crypto trading platforms, appear to operate as conglomerates, bundling products and functions within one firm. In conventional finance these functions are either separated into different entities or managed with tight controls and ring-fences," Cunliffe told his audience.The man in charge of financial stability at the BofE stressed: "Technology in and of itself does not change the need for transparency in corporate structures, governance, audit and systems and controls - for example to protect customers’ funds."Cunliffe says that crypto should be regulated for three reasons: to protect investors, to protect financial stability, and to foster innovation.The third reason "may appear counter intuitive to those who see regulation as opposed to innovation.

But, as I have said before, ‘people do not fly in unsafe aeroplanes’. Innovation may start in unregulated spaces.