Cryptocurrency Is Opportunity for Scammers, Bank of England Governor Declares

Bank of England Governor Andrew Bailey says cryptocurrencies are the top of the list for criminal scams regulators are fighting back against, Bloomberg wrote Monday (April 4).

Bailey was speaking at a “Stop Scams” conference organized by the central bank, and he said the technology making up crypto is contributing to innovation for finances, but also has become a new gateway for criminal activity.

One of Bailey’s complaints is that some users of crypto act like national rules don’t apply to them.

“Some crypto enthusiasts say they shouldn’t be covered by Russian sanctions because that’s not their world,” he said. “I’m sorry, it is your world. We’re all in the same world.”

In addition, he called for banks, companies and government institutions to work with the central bank to fight scams.

London’s Financial Conduct Authority last week extended a deadline for its approval of crypto operations, which gave around 12 companies more time to apply.

The FCA’s rules require crypto companies have to meet stringent anti-money-laundering rules.

Thirty-three companies have now been approved for FCA permanent registration, letting them keep providing crypto services from within the United Kingdom. But the crypto industry has been warning of companies possibly moving their operations if they can’t get FCA approval.

PYMNTS wrote that the U.K.’s FCA had a busy year last year, with crypto scams rising. The report notes that around 3,000 of the almost 16,400 possible scam reports between April and September last year had to do with crypto.

See also: Digital Fraud Tracker: Crypto Scams Increased in UK Last Year

The most-reported type of scam involved bad actors trying to push their targeted consumers to buy overpriced or fake shares or bonds over the phone.

But crypto scams were the second-most-popular type reported, hitting the peak in June. Reports of crypto scams were up 14% from the six months before March 2021.