UK Civil Servants Probe Bitcoin Threat

BItcoin is still a reasonably new currency and the cardinal question that many are still debating is whether or not to believe in it.

It is a question that the UK government has also started to investigate as they prompted UK taxmen, police and other civil servants to gather in London earlier this week to discuss Bitcoin’s security threats and tax consequences, reports the Financial Times.

The answer to this question is integral for the currency’s adoption and validation, and it is an answer that the UK government and 50 civil servants from HM revenue and customers, the organized crime agency, home office and GCHQ—the intelligence listening service—are determined to uncover.

The constituents met in London for a one-day conference where they discussed the Bitcoin system and how criminals could potentially raid the electronic cash currency. The UK government has expressed a deep concern for the virtual currency’s lack of regulation by financial authorities.

The congregation was dubbed, ‘The Future of Money’, and was organized by the government’s Foresight Horizon Scanning Center, which is a branch of the Department for Business in the UK. This was the first meeting of civil servants orchestrated to discuss Bitcoin currency and there were no government ministers in attendance.

The meeting centered on possible implications Bitcoin might bring if highly adopted. UK authorities fear that because Bitcoin users are anonymous, they could easily use the currency for money laundering purposes. The notion that Bitcoin individuals making transactions across borders fall outside tax collection regulations is causing contentious debate.

Michael Parsons, a banking management consultant who was present at the meeting told the Financial Times, “There were a lot of questions. Everyone was very receptive and keen to learn more.”

After the meeting, it was agreed that the civil servants will now work together to create two reports for financial ministers on their conclusions of Bitcoin’s implications. One will be for the public sector and the other for the private.

To read the full story at Financial Times click here.