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UK Treasury Plans to Increase Bitcoin Regulation Through Anti-Money Laundering Regulations

Mehr News Agency (Iran)

In a move to lower risks associated with using digital currencies, the UK Treasury revealed major plans for regulation and protection.

The announcement came from a critical report that was released along with finance minister George Osborne’s annual budget statement.

The contents of the report took a generally positive stand on bitcoin and other similar currencies of its kind, but also clarified that the state of infancy comes with several underlying issues:

“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.”

Bitcoin has been the focus of numerous crippling hacks in the past year, with many service providers unable to offer reliable protection for their customers. The upward trend in fraud and illicit digital transactions has caused the value of bitcoin to fluctuate severely.

Yet, the technology behind cryptocurrecies does have potential to boost the efficiency of financial transactions worldwide. Because of this, the UK government expressed the need to make digital currencies safer and less volatile by applying anti-money laundering (AML) regulations to various exchanges.

The first part of the plan includes a full consultation on the main issues affecting the mainstream use of such currencies. Led by the HM Treasury , the organization will start by compiling insights from law enforcement, the general public and notable companies in the space.

“It provides enough oversight to provide legitimacy without stifling innovation. I think it is a good balance between on the one hand the U.S. and specifically New York , which I think have gone too far, and what a lot of countries are doing which is just completely ignoring it,” said Tom Robinson , co-founder of Elliptic, the world’s first bitcoin insurance vault in London .

(c) 2015 Mehr News Agency Provided by SyndiGate Media Inc. (Syndigate.info).
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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