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03 December 2021 / Daniel Alexie , Gelu Maravela
Issue: 7959 / Categories: Features , Profession , Cyber
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Crypto pressures

66017
Could digital currencies be a catalyst for a financial disaster? Gelu Maravela & Daniel Alexie report
  • Devising a regulatory regime for cryptoassets in the UK, the US, or in other major jurisdictions, will be an incredibly complex process that will take considerable time to implement.

In October 2021, one of the deputy governors of the Bank of England (BoE), Jon Cunliffe, gave a speech in which he identified the ‘justifiable and growing concerns around investor protection, law enforcement and market integrity’ in relation to cryptocurrencies. Mr Cunliffe then proceeded to outline ‘a plausible scenario’ which involved ‘a massive collapse in the price of unbacked cryptoassets’.

To mitigate against such an event, the deputy governor referenced calls made by securities regulators on both sides of the Atlantic such as the CEO of the Financial Conduct Authority and the chair of the US Securities and Exchange Commission—that there is a need for regulation as a ‘matter of urgency’.

Similar warnings have been issued by prominent US figures. Among them the Treasury Secretary, Janet Yellen, who has repeatedly highlighted the dangers that cryptocurrencies pose both

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NEWS
Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
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