In a meeting held at Downing Street between the UK policy makers and Bitcoin dealers, concluded that the government should introduce regulation for the digital currency. According to Bitcoin dealers with such apt regulation Bitcoin can be used for new businesses and play a vital role in the growth and development of trade and commerce.
The UK policy makers have been told by smaller banks, finance houses and Bitcoin companies that big banks are blocking the creation of business accounts for money remittance as they fear that they can be used for financial crimes. Bitcoin is still suspected as governments in several countries consider that these are being used for contraband activities.
Bitcoin is a Financial Innovation
In the meeting where more than 40 people including high-level civil servants from the Department for Business, Innovation and Skills, etc. and several other government departments interested in Bitcoin’s potential, participated and discussed the issues, a conclusion was reached upon that there must be some way to encourage financial innovation in Britain.
Taking a cue from the US and German governments which have set some regulators and asked Bitcoin dealers to follow some regulatory guidance, the UK will also be taking steps to regulate the virtual currency. Whereas in the US a judge ruled that Bitcoin is a currency, the German finance ministry has accepted that the crypto-currency can be used for private transactions.
Lack of Regulations Discouraging People to Transact in Bitcoin
Participants believe that due to a lack of regulation currently there is no compensation for anyone who carries out a Bitcoin transaction. In absence of any recognition and regulation the chance and scope of losses and fraud increase a lot. According to the Bitcoin dealers participating in the meeting, the atmosphere of uncertainty discourages people to do transactions in Bitcoin.
No More Anonymity
According to the participating parties to rule out fraud and trickery in Bitcoin transactions there must be some regulation; however, for that the existing anonymity in transactions will have to go. To become mainstream Bitcoin transactions cannot be completed the way they are completed currently where there is no requirement for names for senders and receivers.
The UK chapter of the Bitcoin Foundation aims to protect, promote and standardize Bitcoin with a focus on the UK. The organization will represent Bitcoin businesses and users when they come up against regulators and the government.
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