The UK has started to take notice of Cryptocurrency and decided they want a piece of the pie, well to be more accurate your pie. Tough new regulations are due to be put in place as early as this month, with all exchange platforms to require KYC (know your client) and follow AML policies. After all we can’t have people profiting without giving up 20% to the state!
These regulations, which are in line with the directives in the EU, are intended to allow easier tracking of who is trading cryptocurrency and where. John Mann, one of the Treasury committee said:
“These new forms of exchange are expanding rapidly and we’ve got to make sure we don’t get left behind – that’s particularly important in terms of money-laundering, terrorism or pure theft. I’m not convinced that the regulatory authorities are keeping up to speed. I would be surprised if the committee doesn’t have an inquiry next year. It would be timely to have a proper look at what this means. It may be that we want to speed up our use of these kinds of thing in this country, but that makes it all the more important that we don’t have a regulatory lag.”
Governments all around the world have begun to stand up and take notice over the last few months as we’ve seen the value of Bitcoin double, then double again.
Just how successful they will be at regulating it though remains to be seen.