Cryptocurrency and fraud. Digital assets are the “new front line” in the scams, according to the Governor of the Bank of England.
Cryptocurrency and fraud are becoming inseparable concepts. Many analysts and financial experts believe so. For example, according to Bank of England Governor Andrew Bailey, cryptocurrencies are the new “front line” of criminal scams that regulators are trying to prevent.
Cryptocurrency and Fraud: The Danger of Digital Assets
Speaking at an anti-fraud conference hosted by the UK Central Bank, Bailey said that the technology behind cryptocurrencies is making a significant contribution to innovation in the financial services industry. But it also creates “opportunities for real criminals.”
“You only need to ask the question: what do people who carry out ransom attacks usually charge? The answer is cryptocurrency,” he said.
However, Bailey lamented that some cryptocurrency users act as if national regulations do not apply to them.
“Some crypto enthusiasts say they should not be subject to Russian sanctions because this is not their world,” he said.
He called on banks, technology companies and government agencies to work with the Bank of England to fight consumer fraud. Which, he admitted, was a job that would “never be done”.
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Cryptocurrency law in the UK and the outflow of companies to Europe
The UK’s financial regulator, the Financial Conduct Authority, last week extended the deadline for approving crypto transactions. This has given many firms more time to get their applications or cases in order. So far, 33 of them have been approved for permanent registration with the FCA. This allows them to continue to provide cryptocurrency services in the UK after April 1st.
Despite the extension, the crypto industry has warned of impending exits. They plan to move their operations overseas if they don’t get FCA approval. This requires compliance with strict UK anti-money laundering regulations.
As a result, a stream of companies will pour into European countries that will deal with cryptocurrency in other jurisdictions. For example, in Germany or Switzerland, ideal conditions have been created for the cryptocurrency sector.