BANK OF ENGLAND WARNS

BANK OF ENGLAND tells banks and insurers to be wary of crypto-assets as they can be highly volatile and vulnerable to fraud.

Sam Woods, Bank of England Deputy Governor responsible for  financial supervision, said the range of products and market participants related to  crypto-assets  has grown quickly.

''In their short history, crypto-assets have exhibited high price volatility and relative ill liquidity,'' Woods said in a letter  to the chief executive of the banks and insurers he regulates.

''Crypto-assets also raise concerns related to misconduct and market integrity    -many appear vulnerable to fraud and manipulation, as well as  money-laundering and terrorist financing risks. ''

The  Bank of England  expects firms  to inform their usual supervisory contact of any planned crypto-asset exposure or activity an ad hoc basis, together with an assessment of the risks associated with the intended exposure. [Agencies].