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The UK and the EU Plan crackdown on Bitcoin amidst fear of crime and tax Evasion vices

Dec 05, 2017 Posted /  4391 Views

The UK and the EU Plan crackdown on Bitcoin amidst fear of crime and tax Evasion vices

Bitcoin Will not be Banned But Regulated

Unlike the regulatory standpoints some countries have taken, the UK will not ban Bitcoin but introduce regulatory measures that would be adopted by all Bitcoin-related entities in the country. These measures will involve forcing Bitcoin traders to reveal their identities to the authority a move that will compromise the anonymity features of Bitcoin.

The plan to regulate Bitcoin in the entire Europe is targeting online bitcoin trading platforms as a major stakeholder in bitcoin activity in the region. With the regulation in place, Bitcoin traders will be required to hold customer biodata and identify and report any suspicious activities which could be violating the set guidelines. According to the UK government, necessary negotiations are currently ongoing seeking for an amendment on the existing AML regulations to encapsulate regulating of bitcoin platforms too. A treasury spokesperson was quoted by the guardian saying,

“ We are currently in the process of fixing some issues associated with the use of cryptocurrencies. We are in negotiations which are aimed to include cryptocurrency exchanges and some wallet services to be regulated under the existing AML laws and Counter Terrorism financing regulations”

Deputy Governor Bank of England Speaks Out

On the other hand, the Deputy Governor of Bank of England believes that Bitcoin is too small to cause any kind of worry to the world. It's unclear whether the deputy governor Jon Cunliffe understands the full capabilities of Bitcoin as a lot of finance and security experts believe that bitcoin that carry a significant risk of insecurity and finance-related crimes. However, Sir Jon Cunliffe cautioned bitcoin investors to do their homework in regard to the escalating prices of bitcoin.

The deputy governor may have a different view in reference to the financial issues with possible effects on the public. Recently a debate about the growth in consumer credits he voted among the minority opposing a rise in interest rates in the UK which occurred this month. He told BBC radio during an interview that although he agreed with his colleagues that Britain’s potential rate of economic growth was slowing after the financial downturn, no inflationary signs were being observed.

Parliament to Look into a Possible Regulatory Framework

Labour Member of Parliament, Hon. John Mann of the house of Commons Treasury select committee proposes that a possible regulatory framework for cryptocurrency needs to be tabled in the parliament. John Mann told the daily telegraph that,

“ It's clear cryptocurrency exchanges and coins are on the rise rapidly we have to make sure we are not left behind by this development” he continued saying “  it would be the right time to have a proper look at the implications of all these. A regulation will be required to curb the negatives products of these technologies so we have to deliver on that”

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Tags: bitcoin

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