UK Bitcoin regulation
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The UK government has shown its intention to regulate bitcoin and other digital currencies, drawing them into the realms of financial regulation applied to banks and other financial services. But bitcoin is not a bank or a financial company based in the City. How would regulation apply to something that exists in the cloud?
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Suspicious activity reports? How?
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An opportunity perhaps… make sure FTC is the first coin to adhere to said “regulations” and it becomes the speculative investors choice, and boom real world usage!
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But how? The only solution which would work for a decentralised entity would be block chain based… Hmm
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I’ve asked my MP, but i think their knowledge of technology is not very advanced. I suspect these issues might lead to separate economies where you work / buy sell in FTC and don’t exchange back to FIAT.
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If they want any UK based exchange to require every user to provide with a copy of a government issued ID for activity monitoring, it isn’t going to work well.
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If they want any UK based exchange to require every user to provide with a copy of a government issued ID for activity monitoring, it isn’t going to work well.
Serious question.
Why won’t it work well?
Any current UK based exchange that allows fiat withdrawl/deposits currently has to follow the UK (anti) money laundering regulations, which requires identity checks already. As do other governments.
https://www.gov.uk/money-laundering-regulations-introduction
??? :o
ah - maybe I see. For a *global* exchange based in the UK this would be a problems - but then many governments also have AML regulations which would also have to be complied with.
I still don’t see the major objection, other than for people ideologically opposed to government intervention. But wouldn’t most people not have a problem with this (commonly referred to in bitcoin forums as “sheep”)?
Cheers
Dave
* edit *
OK - having re-read the article I would like to refine my post above so in brief… I both agree and disagree that what is proposed will work.
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Any exchange/business based in the UK would have to comply with the regulations (whatever they are). They already have to comply with AML if they handle fiat.
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Any “blockchain/cloud” based services linked to a UK business would have to comply with the regulations.
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Other “blockchain/cloud” based services not linked to any business (example : DAC, NXT Asset Exchange) would not be able to be regulated by the UK Government (nor would it currently be possible to do so).
Hmm.
Did I just rebutt my own question ???
Just my thoughts.
Cheers
Dave
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If they want any UK based exchange to require every user to provide with a copy of a government issued ID for activity monitoring, it isn’t going to work well.
Well that is exactly what you need to do, if you want to excange crypto from/to FIAT or withdraw/deposit FIAT at cryptsy.com
bitcoin.de requires similar identification…
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Local Bitcoin does not
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There are many ways to exchange crypto vs. fiat including those with a high degree of anonymity, but that’s not my concern. They want to regulate crypto trades just like they do with traditional commodity and stock exchanges. They want you to play fair and pay taxes for the most part of your crypto activities.
