UK and EU prepare legislation as Bitcoin rises over $10,000 value

It looks like the UK and EU governments are going to start taking a closer look at Bitcoin regulation. According to reports this week, both governments are growing concerned that the digital currency is being used for tax evasion and money laundering. As a result, the Treasury is making plans to regulate cryptocurrencies.

Under a new EU-wide plan, online platforms where bitcoins are traded will be required to carry out due diligence on customers and report suspicious transactions. This would bring cryptocurrencies in-line with current anti-money laundering and counter-terrorism financial legislation.

As The Guardian reports, these new rules are expected to come into effect some time next year. This all comes at a time where Bitcoin is expanding rapidly, this year alone the currency has broken several records. Currently, each Bitcoin is worth $11,125, though there have been several dips over and under the $10,000 mark over the last week.

When Bitcoin is overseen by UK and EU legislation, firms and transaction activity will be overseen by national authorities.

KitGuru Says: Bitcoin wasn't going to stay under the government's radar forever, particularly after this year. Throughout 2017, Bitcoin has continued to boom, causing value to skyrocket. Whether or not legislation will have an impact on that remains to be seen, but it seems likely.

 

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