The Battle Over Bitcoin Regulation In The UK

By Chanel Smith (@PYMNTS_EMEA)

It was just last month that Bitcoin Foundation representatives gathered with officials from the U.S. law enforcement agency and regulators in Washington, D.C. to converse about monitoring Bitcoin activity. According to Bloomberg, the U.S. discussion about regulation is only it its beginning stages, and involves an “on-going dialogue with virtual currency providers,” stated John Sullivan, a Treasury Department spokesman.

The saga surrounding bitcoin in the UK is continuing as well, with the latest chapter taking place on Downing Street in London earlier this week.

Finance officials from small banks, financial institutions and bitcoin-using companies congregated to discuss possibly introducing regulatory measures for the virtual currency known as bitcoin.

According to The Guardian, various attendees argued that bitcoin could cause harm to remittance businesses because of the possibility of financial crime. However, bitcoin believers shot back and stated that if the British government helped to regulate the currency by installing policies, then the digital coins could help businesses grow.

Yes, despite the fact that much of bitcoin’s popularity is due to anonymity and a lack of central authority, some bitcoin-using companies are actually encouraging that the Financial Conduct Authority to consider regulating the virtual currency.

Tom Robinson, founder of UK startup Bitprice, announced at the London meeting that he was in support of regulation. Robinson explained such a move would help to legitimize bitcoin so that it can be used in business and improve economic growth.

At the meeting, Robinson also revealed that he hopes to use the currency to introduce a virtual exchange program. The only roadblock standing in his way, he claimed, is that the banks aren’t allowing the creating of new accounts for these money remittances in fear they will increase financial fraud.

Robinson explained to the attendees that if bitcoin’s anonymity was removed and regulations put in place, then banks might be more apt to cooperate.

To read the full article at The Guardian click here, or at Bloomberg click here.