Accenture: UK Government Should Regulate Bitcoin Wallets


The UK government should apply the same regulation and identification requirements to bitcoin wallets as it does to bank accounts, Accenture has advised.

Documents obtained by CoinDesk through a Freedom of Information request show the multinational management consulting company’s response to the Treasury’s call for information on digital currencies.

Dated December 2014, the company takes a very positive stance on cryptocurrencies, such as bitcoin, highlighting their potential.

Accenture states:

“Digital currencies are at an early stage of development and usage, but they are here to stay and the technology has the potential to reinvent many aspects of financial services.”

However, the document also recognises the risks associated with these currencies, including price volatility, lack of consumer protection and the potential loss of funds, for example by forgetting a private key, or through a fraudster gaining access.

Suggested regulation

Accenture believes bitcoin’s biggest problem currently is its association with, and use in, money laundering. It claims the identification requirements applied to bank accounts should also be applied to bitcoin wallets.

“In the same way that governments require identifiable bank accounts (through named accounts and know-your-customer checks), a requirement for named, identifiable digital currency wallets would be a core component of a safe,

Read more ... source: CoinDesk