Cryptocurrency has really made an uproar in the marketing economy. Large companies, business owners, and down to the person buying a pack of cigarette in the store, it seems that that the trend of using this new currency is slowly making its way to our everyday lives.
While Dash, Bitcoin, Dogecoin, and other cryptocurrencies have been deemed safe by those who use it, there are still holes to be filled in order to protect these very users. And the UK has made a move to do just that.
The country has recently released a treasury report that plans on regulating cryptocurrency being use in nefarious activities such as money laundering, tax evasion, terrorist financing, illegal cross-border transactions, and other criminal acts. As such, the UK will be implementing an Anti-money Laundering (AML) regulation on all form of cryptocurrency.
This move is designed to protect users from illicit parties and support the growth and innovation of cryptocurrency, at the same time creating a stifling environment that will discourage criminal activities.
One of the major concerns that regulators face is the anonymity that digital currency allows. However, it’s been argued that it isn’t complete anonymity – more like pseudoanonymity – since a public ledger (called a blockchain) is freely available to anyone. This blockchain leaves a comprehensive paper trail which can help investigators track down illicit users.
The UK government is readying themselves for any unforeseen consequences that cryptocurrency will bring in the future. It will work closely with the British Standard Association to develop rules that is to be integrated into already existing regulations.
It’s also been reported that the UK is to allocate 10 million pounds for new initiative research regarding digital currency. This initiative will join Research Councils, Alan Turing Institute and Digital Catapult to conduct research on the advancement of digital currency, as well as address the challenges that it poses.
Experts and companies have agreed to two things: cryptocurrency is a promising technology that will help drive the economy forward. And it is high time that regulations are to be imposed upon it to further lessen the doubt of the public and those who are interested in joining this progress.
The regulations that will be propose is based on the comprehensive report of Her Majesty’s Treasury – Digital Currencies: Response to the Call of Information. While those that are included in the report are still subject for debate, it’s expected that little to nothing will be changed when it’s to be presented and consulted on the next parliament.
Regulations that were included in the report aren’t likely to affect businesses involved since they are already following guidelines that are akin to the ones that are to be implemented.
One thing that regulators should keep in mind is that cryptocurrency is still a young technology. As such, the guidelines that are to be imposed shouldn’t be preemptive in nature since a lot can change over the course of its advancement. Ensuring that this is so will increase the likelihood of cryptocurrency to grow into something that everyone can benefit from.