UK government to examine regulations associated with Bitcoin

Market - Mohit Shah - Dec 05,2017

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uk government to examine regulations associated with bitcoin

According to the UK Treasury, anti-money laundering regulations might soon be updated for the inclusion of Bitcoin and other cryptocurrencies.

The UK and other EU governments are actively planning a curb on bitcoin in the middle of growing concerns that the cryptocurrency is being utilized for tax evasion and money laundering.

The UK Treasury is anticipated to regulate bitcoin along with other digital currencies to study them together in context with anti-money laundering as well as counter-terrorism financial legislation. Based on this step, traders would be pushed to disclose their identities, concluding the namelessness which has made the currency attractive for illegal activities like drug dealing.

According to Bitcoin expert Dr. Garrick Hileman, in several authorities such as New York, the operations of crypto-currency are already focused on tighter regulation. He added, such announcements have a “powerful signaling” impact and place the industry on alert.

Considering the EU-wide plan, different online platforms through which bitcoins are bought and sold will require to carry out due attentiveness to customers and inform suspicious transactions. Similarly, the UK government is trying to negotiate amendments concerned with the anti-money-laundering directive. This would help to ensure that firms’ activities are superintended by national authorities.

As per speculations, the rules would be imposed in the next few months. The UK Treasury said digital currencies can be used to enable and facilitate cybercrime. The authority mentioned, there is little evidence of these cryptocurrencies being used for money laundering; however, the threat is “expected to grow.”

Currently, the value of Bitcoin is on a significant climb after hitting a landmark value of $10,000 (£7,400). Sir Jon Cunliffe, Bank of England deputy governor, has recommended people to complete their “homework" before they finalize the investment.