The Governor of the Bank of England expresses concern over the use of cryptos for ‘illegal conduct’
Andrew Bailey, Governor of the Bank of England, is in the news today after raising worries about crypto-assets potentially aiding unlawful activity. According to sources, he asserted that the widespread adoption of bitcoin as a “method of payment” benefits criminals and scammers as well. He stated during an occasion,
“I’m afraid that the development of digital payment methods, particularly crypto assets… provides another method of payment for individuals seeking to engage in illegal activity.”
It’s worth noting here that the combined cryptocurrency market valuation recently surpassed $3 trillion. Jim Cramer, a popular news presenter, reportedly also suggested that the asset class has been gaining “credibility.”
Nonetheless, recent stories of crypto-scams utilizing Google Ads following a big Squid Game rug pull should serve as a warning to users. Crypto-related frauds have increased dramatically in the United Kingdom alone in 2021. Indeed, victims lost almost $200 million in the first nine months of the year alone, with the incidence rate increasing by 30% year over year.
Previously, Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, advocated for more controls. He had stated,
“The cryptocurrency industry is beginning to integrate with the regular financial system, and we are witnessing the creation of leveraged actors. And, maybe most significantly, this occurs in a completely unregulated space.”
Despite these warnings, industry pundit Max Keiser believes that even the Bank of England will eventually purchase Bitcoin before it reaches $1 million per coin.
Philip Hammond, the former British Chancellor of the Exchequer, recently stated in an interview that crypto in business is “unstoppable.” As he stated,
“This is going to happen; we have probably reached an impasse.” He emphasized that while tokenization and distributed ledger technologies would cause disruption to the existing banking system, they will deliver benefits in the coming years.
“The UK financial services industry has thrived on innovation and disruptive change, frequently as a result of its ability to adopt new technologies more rapidly and effectively.”
As a result, he feels it is a “great chance” for the United Kingdom to grab and for London to establish itself as a “leader.”
It’s worth noting here that Hammond has left parliament to join Copper, a cryptocurrency firm based in the United Kingdom. Apart from that, sources indicate that other British politicians have increased their exposure to the asset class. Both current and former UK Members of Parliament, such as Marcus Fysh and Grant Shapps, have previously expressed an interest in the industry.