The Ministry of Finance of great Britain plans to regulate bitcoin

The Ministry of Finance of great Britain plans to regulate bitcoin

Proponents of bitcoin understand that the official policy of the regulation and the statements of many governments caused not by threats or tax evasion, as a continuous and unprecedented high growth rates for the world’s most popular cryptocurrency.

In a local publication that the Ministry of Finance of great Britain “launches the crackdown against the virtual currency – bitcoin, amid growing concern about its possible use for money laundering and tax evasion”.

The Ministry of Finance is concerned about bitcoin and related threats and theft

Robert Mendick and Gordon Rayner reported that the Ministry of Finance “revealed plans to regulate bitcoin and force traders to the so-called cryptocurrencies to reveal their identities and report suspicious financial transactions”.

The mainstream media constantly reminded about anonymity in bitcoin transactions, and, in fact, this reason is regularly cited to justify intervention by government. The fact that the digital asset is pseudo-anonymous, which means that the basic payment process difficult to track.

The irony, of course, is that, perhaps, the most anonymous currency is Fiat money and metal coins – money issued by the state.

“These new forms of exchange quickly spread, and we need to make sure that we are not far behind. This is particularly important in terms of money laundering, terrorism or simple theft,” explained an MP from the labour party John Mann. Mann is also a member of the Treasury Committee of the Parliament.

The delay regulation

“I’m not sure that the regulators are not far behind. I wonder if the Committee next year no request,” said Mr. Mann.

The Office of financial regulation and supervision (FCA) of the country this year posted a warning for investors and companies involved in activities from cryptocurrency to IPOs of coins. This body even declared that bitcoin is not a currency.

Mann came to this conclusion: “Now is the time to carefully consider this question. We’ll probably want to speed up the use of these things in the country, but more important to eliminate the delay in regulation”.

Mandic, and Rayner believe that the rules of regulation of bitcoin will spread across the continent. And regulation can begin by the end of this year (which is unlikely) or “in the beginning of 2018, according to the Minister”.

Perspective

As for the real numbers, although the bitcoin in the press is described as sky-high, in fact, cryptocurrencies in General and bitcoin in particular, is unlikely to dominate in financial matters. The cryptocurrency is still a long way to go.

This year the Cambridge business school judge issued a “Global comparative analysis of the cryptocurrency (Global Cryptocurrency Benchmarking Study”). This report is 115 pages contains an exhaustive overview of the situation of bitcoin in 2016, as more details of Cambridge centre for alternative Finance.

The results of the study include: from 2.9 to 5.8 million active users of wallets; at least 1876 people work in the cryptocurrency industry. Of course, these numbers increased significantly in 2017, but nothing compares in scale to the volume of critical studies and negativity in the press, fell on the ecosystem, even with the tenfold increase.

However, British regulators aim is on the basis of the relative anonymity of bitcoin, according to Stephen Barclay, Secretary for economic Affairs in the Ministry of Finance. “At the moment the UK government is discussing the amendments with which the field of combating money laundering and antiterrorist financing can be spread on the exchange platforms of virtual currencies and providers of purses. This will ensure the supervision of the national competent authorities on the activities of these firms,” wrote Mr. Barclay.

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