The Central Bank of England has notified crypto investors that acquiring cryptocurrencies is a perilous business.
Andrew Bailey, who is the Chief of the Bank of England, cautioned investors regarding the perils of the crypto market.
Speaking to a conference meeting this week, Bailey scrapped the word “cryptocurrencies”, declaring that “cryptocurrency assets” is a more suitable expression to refer to digital currencies.
Bailey has reiterated a tattered anti-crypto oratory, in instance the claim that cryptocurrencies have no underlying value.
Bemoaning cryptocurrency investors with an overly harsh caution, he stated:
“Sorry, but I’ll say it extremely frankly again: only invest in them if you’re ready to lose all your money.”
In his address, the central bank head also remarked on the enthusiasm regarding the cryptocurrency market. He rationalized that people value cryptocurrencies with their lack of real value for their “extrinsic value”:
In this particular remark, he was probably referring to Dogecoin, meme-based crypto that has expanded by 12,800% since the start of the year.
Clearly, Bailey does not hold a high estimation of the value of cryptocurrencies. Nevertheless, this does not stop the country’s tax authorities from believing citizens use these digital currencies in the pursue of tax evasion.
In April, Her Majesty’s Revenue and Customs revealed their intent to take further measures to fight cryptocurrency tax evasion.
We remind that not long ago the UK government introduced a ban on crypto derivatives trading.
