The UK government has reportedly asked its spy service to conduct a review of potential risks related to Bitcoin, according to a report in The Telegraph. The National Cyber Security Centre (NCSC) has been tasked with exploring cryptocurrency technology, learning more about how it works, and identifying potential risks. At the same time, the agency has been asked to evaluate the benefits offered by blockchain technology.
Reports suggest that the UK government is increasingly concerned about Bitcoin’s risks due to its meteoric price increase in recent weeks. While the government has no current regulations in place to manage cryptocurrency-related concerns, there are indications that Treasury is looking at ways to rein in Bitcoin and other digital currencies with regulatory changes that would apply anti-money-laundering and know-your-customer rules to the emerging crypto industry.
NCSC deputy director for cyber skills and growth Chris Ensor explained why his agency has been tasked with the job: “We are interested in anything that could affect the country, so Bitcoin is a major thing now.”