United Kingdom Treasury wants to crack down on Bitcoin since there are growing concerns of its use in money laundering and dodging taxation and will implement a regulation that requires cryptocurrencies to disclose their identities and report suspicious activity.
The new law is expected next year.
The treasury committee is not convincing that the regulatory authorities are up to speed with recent developments in the crypto world.
Labor Party Minister of Parliament (MP) John Mann explained,
“These new forms of exchange are expanding rapidly and we’ve got to make sure we don’t get behind. Since that’s particularly important in terms of money-laundering, terrorism or pure theft”.
This comes even as the tendency in the most recent past has been some. Even though a few crypto projects welcoming regulation while ensuring privacy for their customers. Although it is obvious that will be a highly contests debate.
The Financial Conduct Authority recently warned investors and firms in cryptocurrencies and ICOs. Mann says that while they might want to speed up use of cryptocurrencies in the country. It makes it more important that they keep to speed in terms of related law and regulation.
Also Read: Cryptocurrencies role in enabling cybercrime: UK Government
This is an EU-wide plan for online platforms and they are currently in negotiations. Thus, which are expecting to conclude at EU level in late 2017 or early 2018. Mann believes Bitcoin regulation will also spread to other countries in the continent. The domination of Bitcoin might lead to that because University of Cambridge Judge Business School said in its Global Cryptocurrency Bench-marking Study that cryptocurrencies have a total of between 2.9 and 5.8 million users and at least 1,876 people were working in the industry on a full-time basis.
However, the real interest could be bringing cryptocurrencies under the Anti-Money Laundering and Counter-Terrorist Financing Regulation according to Economic Secretary to the Treasurer Stephen Barclay in a written parliamentary answer in November.
“The UK government is currently negotiating amendments to the fourth anti-money laundering directive. Thus that will bring virtual currency exchange platforms and custodian wallet providers. Since into anti-money laundering and counter terrorist financing regulation. It will result in these firms’ activities being overseen by national competent authorities for these areas”.
CEO of Commerce Block, Nicholas Gregory said in an email to Business Insider that some regulation could be good news to the crypto community.
“What some will bill as censure, the cryptocurrency community will deem as a stamp of approval that finally recognizes the pivotal role that digital currencies will ultimately hold for the global economy,” he said.