Why UK Treasury wants to regulate Bitcoin

Why UK Treasury wants to regulate Bitcoin

United Kingdom’s Treasury Ministry said it will seek to regulate the use of Bitcoin over concerns that it is been used for money laundering and that it encourages tax evasion.

The ministry said it will be “launching a crackdown on the virtual currency Bitcoin amid growing concern it is being used to launder money and dodge tax.”

As quoted by Bitcoin.com, Robert Mendick and Gordon Rayner reveal the Treasury “has disclosed plans to regulate the Bitcoin that will force traders in so-called crypto-currencies to disclose their identities and report suspicious activity.”

A constant mainstream media refrain is bitcoin’s supposed anonymity in transacting, and indeed this pretext is once again trotted out to justify government intervention. Facts matter, and the fact of the matter is the digital asset is pseudo-anonymous, meaning it can be difficult to track relative to mainstream payment processes.

The irony, of course, is how arguably the most anonymous currency of all is fiat paper and metal coinage — government issued money.

“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,” explained Labor Party Minister of Parliament (MP) John Mann. Mr. Mann is also a member of the Treasury Committee.

Various countries have raised concerns about the popularity of Bitcoin and how it is been adopted by individuals and recently institutional investors.