Crypto assets are helping illegal activity, BoE’s Bailey says

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Bank of England Governor Andrew Bailey said that the rise of crypto assets was helping illegal activity.

“I’m afraid that the advent of digital means of payment, and in particular crypto assets, I’m afraid that the evidence suggests, and we see this, is that it is providing another means of payment for people who want to conduct criminal activity,” Bailey said during an online question-and-answer session organised by the BoE.

Such warnings do not appear to deter investors as yet.

Bitcoin jumped more than 4% to as high as $66,555 on Monday, approaching the $67,016.50 record high of Oct. 20, while ether, which underpins the Ethereum blockchain, touched an all-time peak of $4,796.44.

“The BTC (bitcoin) price surge is just a confirmation of an incredibly strong market setup that has been developing throughout October,” Mikkel Morch, executive director at crypto and digital assets hedge fund ARK36, said.

“As bitcoin exchange balance is at a three-year low while long-term holder supply is at an all-time high, there are simply too few bitcoins available to keep up with the demand.”

Investors also poured $31 million into Ethereum products and funds last week. Although Ethereum’s market share has declined in recent months as bitcoin’s dominance has grown, a recent combination of positive price performance and strong inflow pushed its assets under management to a record $20 billion.

Tron, a digital platform focused on hosting entertainment applications, had inflows of $79 million over the last seven weeks, making it the 8th largest virtual asset in terms of AUM.

AUM at Grayscale and CoinShares, the two largest digital asset managers, rose last week to $55.67 billion and $5.5 billion, respectively.

via Reuters

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