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19 de sept. de 2025 Bank of England plans that would raise bank capital requirements would be very bad for Britain's economy, NatWest's finance director said, as lenders resist tougher Better regulations are needed to protect the financial system after the collapse of the FTX cryptocurrency exchange, a senior Bank of England official has said. The Bank of England said a $2 trillion plunge in the value of cryptoassets underscores vulnerabilities in the market and the need for tougher law enforcement and 12 de sept. de 2025 The BoE’s Prudential Regulation Authority on Thursday said the changes included easing capital requirements on small business lending, mortgages, trade finance and This paper studies how banks respond to capital regulation using confidential data on bank‑specific requirements in the UK. Banks do adjust their capital ratios following As soon as MiCA took effect, Tether’s USDT experienced a $2 billion drop in market capitalization– the biggest since the FTX collapse. Even before MiCA’s enactment The Bank of England called for stricter regulations following the loss of a $2 trillion crypto market cap in a few months. The rise in the adoption of crypto g

Bank of England Calls for Stricter Crypto Regulation After $2 Trillion Market Cap Drop

The Bank of England (BoE) is urging stricter regulations for the cryptocurrency market following a significant $2 trillion drop in market capitalization. This plunge underscores the vulnerabilities within the crypto space and highlights the urgent need for enhanced law enforcement and regulatory oversight.

Why Stricter Regulations are Needed

The recent market volatility, highlighted by the $2 trillion loss, has amplified concerns about the potential risks posed by unregulated cryptoassets to the broader financial system. A senior Bank of England official recently stated that better regulations are crucial to protect the financial system, especially in the wake of events like the FTX collapse. The BoE’s Prudential Regulation Authority has been actively reviewing capital requirements, with changes including easing requirements on small business lending, mortgages, and trade finance (12 de sept. de 2025). However, the crypto market demands a different, more stringent approach.

Impact on the UK Economy

The proposed regulations are not without debate. Some argue that raising bank capital requirements, as considered in BoE plans (19 de sept. de 2025), could negatively impact Britain's economy. NatWest's finance director expressed concerns that tougher requirements might hinder lending. However, the BoE believes that the long-term stability and integrity of the financial system outweigh these concerns. Studies show that banks do adjust their capital ratios following specific requirements in the UK.

MiCA and Tether's USDT

Even before the full enactment of the Markets in Crypto-Assets (MiCA) regulation, the market reacted. For instance, Tether's USDT experienced a $2 billion drop in market capitalization – the largest since the FTX collapse – as MiCA took effect. This highlights the sensitivity of the crypto market to regulatory changes and the potential for significant price fluctuations.

The Future of Crypto Regulation

The Bank of England's call for stricter regulations signifies a growing global consensus on the need for greater oversight of the cryptocurrency market. The rise in the adoption of crypto assets necessitates a framework that balances innovation with consumer protection and financial stability. The BoE's stance is a crucial step towards establishing a more secure and transparent environment for the future of cryptocurrency. The market cap drop highlights vulnerabilities in the market and the need for tougher regulation, particularly against potential abuse and manipulation of assets.

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