- The UK and other EU governments plan to regulate cryptocurrencies, including bitcoin, amid concerns they are being used for money laundering.
- New legislation will bring cryptocurrencies in line with anti-money laundering and counter terrorist financing legislation by increasing transparency.
- The new legislation is expected to come into effect next year.
LONDON — The UK government is planning to crack down on bitcoin as concerns grow that cryptocurrencies are being used to facilitate financial crimes and launder money.
The Treasury is planning new legislation that will mean anti-money laundering and counter terrorist financing rules apply to cryptocurrency in future, according to reports in the Guardian and the Telegraph.
It will include rules forcing traders to reveal their identities in some circumstances. Under an EU-wide plan, online platforms where currencies are traded will be made to carry out due diligence on buyers.
In October, economic secretary to the Treasury Stephen Barclay said in a written parliamentary answer: “The UK government is currently negotiating amendments to the fourth anti-money laundering directive that will bring virtual currency exchange platforms and custodian wallet providers into anti-money laundering and counterterrorist financing regulation, which will result in these firms’ activities being overseen by national competent authorities for these areas.”
He said the government “supports the intention behind these amendments,” and negotiations are expected to conclude at EU level in late 2017 or early 2018.
A Treasury spokesperson told ZDNet: “We have clear tax rules for people who use cryptocurrencies, and like all tax rules, these are kept under review. We also intend to update legislation to bring virtual currency exchange platforms into anti money laundering and counter terrorist financing regulation.”
Nicholas Gregory, CEO of CommerceBlock, said in an email to Business Insider: “What some will bill as censure, the cryptocurrency community will deem as a stamp of approval that finally recognises Read More Here