UK Central Bank to Clamp Down on Crypto Money Laundering

The head of the Bank of England has said that the institution will step up its efforts to combat cryptocurrency money laundering.

AccessTimeIconMar 2, 2018 at 1:15 p.m. UTC
Updated Aug 18, 2021 at 8:22 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The head of the U.K.'s central bank has said that the institution will step up its efforts to combat the use of cryptocurrencies in illegal financial activities.

During a speech at the Scottish Economics Conference in Edinburgh on Friday, Mark Carney, governor of Bank of England, said he thinks more rigorous regulations should be applied to exchanges in an effort to curb illicit use of cryptocurrencies in financial crimes, such as money laundering and terrorism financing.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • “In my view, holding crypto-asset exchanges to the same rigorous standards as those that trade securities would address a major underlap in the regulatory approach," Carney said.

    Further, the central bank chief said he doesn't believe cryptocurrencies currently pose significant risks to the existing financial system. However, such risks may grow as retail adoption of bitcoin expands and traditional institutions lag behind on improvements to their systems.

    In other comments, Carney said that he believes cryptocurrency is "failing" as a type of money. It acts "at best, only for some people and to a limited extent, and even then only in parallel with the traditional currencies of the users," he said.

    The central bank chief added that he is not against the innovation provided by cryptocurrencies, however, and argued that regulation would be of benefit to the industry, as well as consumers.

    "Their core technology is already having an impact. Bringing crypto-assets into the regulatory tent could potentially catalyse innovations to serve the public better," he said.

    The comments come soon after a warning from the country's top financial regulator on the risks of cryptocurrency investment.

    As reported in December, Andrew Bailey, the chief of the Financial Conduct Authority, warned domestic investors that cryptocurrency assets like bitcoin are not regulated in the U.K. and, as such, any investment loss may not be protected.

    Bank of England image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.