The British State Treasury is planning to introduce regulations that will cover Bitcoin and other digital currencies at the end of 2018

12/07/2017

The agency is increasingly concerned about the possibility of using virtual currencies for illegal activities, such as money laundering and tax evasion, due to their increasing popularity.

According to the planned legislation, which is to cover the whole European Union (EU), trading in cryptocurrencies will be forced to reveal their identity and report any suspicious activities that they can detect in virtual trading.

Such a move by the UK government may cause confusion among industry players, as most of the exchanges in the country are already in line with the existing rules on customer knowledge (KML) and the law on money laundering (AML).

The proposed regulation can be implemented by the British government in the near future due to the dynamically developing digital currency market in the country. The continuous rise in their prices on the market, in particular Bitcoin, has attracted many people who can be encouraged to invest in tokens due to rising rates.

Lack of applicable regulations regulating the trade and use of digital currencies may cause that the money will be invested by people in the high risk group.

According to the spokesman of the British Ministry of the Treasury, the new crypto-currency regulation can be implemented by the end of 2018. This preliminary date, however, may be amended and details of the proposed regulations are not yet defined.

It is also expected that in the near future more regulations will be introduced related to digital currencies in various EU countries.