Financial safety

British spy agency tests Bitcoin risks

The Treasury has enlisted Britain’s spy agency to probe the risks associated with Bitcoin, as the digital currency’s price continues to soar.

Chris Ensor, the deputy director for cyber skills and growth at the National Cyber Security Centre, an arm of GCHQ, told The Telegraph it is investigating potential security risks on behalf of for Government departments.

“We are interested in anything that could affect the country, so Bitcoin is a major thing now,” Mr Ensor said. He said work on the cryptocurrency included assessing how it works as the Treasury considers a crackdown, as well as the potential benefits of blockchain, its underlying technology.

Bitcoin’s stunning rise, from less than $1,000 (£745) at the start of the year to as much as $17,000 last week, has attracted the attention of institutional investors but also caught the eye of governments and regulators...