The UK Treasury has announced plans to strongly regulate the cryptocurrency in order to prevent money laundering and tax evasion.
No specific details of future regulations is unknown, but they will include practices for combating money laundering – AML and KYC.
Regulations should enter into force before the end of 2017 or early 2018. Advanced rules, the relevant EU directives designed to limit the level of confidentiality possible when dealing with cryptocurrency. According to John Mann, head of one of the committees of the Treasury:
These new forms of exchange are spreading rapidly, and we must ensure that we do not lag behind – this is especially important from the point of view of combating money laundering, terrorism or fraud. I want to be sure that regulators are not late and that in our country there is no regulatory lag.
Regulators in other countries
The growth of popularity of bitcoin need regulation work with cryptocurrencies are increasingly the governments of different countries and they all react differently. China, Russia and some other countries took the path of repression, while countries such as Switzerland and Malta, seem much more open.