UPDATED: UK’s Plans to Regulate Bitcoin Revealed in Treasury Report

george osborne

The UK Treasury has announced a series of initiatives dealing with digital currency in a landmark report published in conjunction with the Chancellor of the Exchequer’s annual budget speech today.

The announcement is the government’s first major attempt to grapple with the regulatory and consumer safety issues surrounding digital currencies.

The report is largely positive towards digital currencies, noting its potential as a payments technology, while also underlining its nascent state and the potential risks associated with its use.

The report said:

“The government considers that digital currencies represent an interesting development in payments technology … the potential advantages are clearest for purposes such as micro-payments and cross-border transactions.”

The most significant announcement is the government’s plan to apply anti-money laundering (AML) regulations to digital currency exchanges.

AML Legislation Plans

HM Treasury will lead an effort to seek the views of digital currency companies and the general public in a “full consultation” on the issue early in the next Parliament, according to the report. The UK is due for a general election on 7th May and the new parliamentary year will begin soon after that.

The government will ask for feedback on crucial questions like who should fall under

Read more ... source: CoinDesk