The UK’s central bank released a Financial Stability Report on July 5 noting a sharp fall in the valuations of crypto assets and calling for improved regulation of cryptos. The Bank of England (BoE) noted that there are vulnerabilities in the market.

The apex bank said it was necessary to protect the wider financial system despite a recent sharp decline that did not present risks to financial stability in general. It is necessary to have stronger law enforcement and regulations, said the report.

In recent times, the BoE has touched on issues related to crypto, such that it warned about the possibility of the industry posing a threat to the established financial system. However, about three months ago, the government said it was planning to turn the UK into an international cryptocurrency asset tech hub.

The BoE revealed plans to be involved in directing and overseeing collapsing stablecoins. The Financial Stability Report released on July 5 said it is necessary to regulate stablecoins, as “some stablecoins held to be used for payments may not offer similar protections to central bank or commercial bank money.”