UK Government Was Planning Regulation Of Digital Currencies

According to report by Reuters, the UK government was planning to subject crypto currencies such as Bitcoin to the same anti-money laundering policies as normal paper currency. The UK finance ministry planned to regulate the currency via digital currency exchanges which are utilized by users for the trade of crypto currencies.

Britain’s treasury said in a report which was published concurrently with Minister George Osborne’s annual budget statement that this move would catalyze innovation and prevent the illegal use of digital currencies, with the most notable example being the use of Bitcoin on the deep web for purchase of illicit goods and services such as drugs and guns for hire. The proposal was brought in the next parliament meeting.

The British Standards Association (BSI) works in conjunction with the UK government for the development of a set of standards for regulating the currency to secure it for the users. Furthermore, the Treasury announced its plans for the startup of a new research program for the advancement of digital currencies, which have been exponentially gaining traction over the past few years. The treasury plans to invest an additional 10 million pounds in the program.

“Today’s announcement is significant in that it brings Bitcoin and other block chain technologies closer to mainstream adoption,” said Tom Robinson, one of the board members in the UK Digital Currency Association.

Published in February, a discussion paper by the Bank of England detailed the considerable promise shown by digital currencies such as Bitcoin and how it was possible to transfer money via Bitcoin securely without the need of a signatory.

All of this led to the final question: Should central banks start issuing digital currencies themselves?

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