According to the Independent, the British Treasury plans to introduce regulations on Bitcoin and the whole cryptocurrency market by the end of 2018. The reason for this is that the governmental agency is increasingly concerned about the possibility that these digital coins could be used in illegal activities, such as money laundering and tax evasion.
The planned legislation comes from a wider set of regulations that are created to cover the entire European Union and it would mean that every cryptocurrency trader will be compelled to disclose his identity and report any suspicious activity that they may discover on any of the cryptocurrency platforms.
It is not clear how this will impact the regulations that are already in place, as the majority of exchanges in the United Kingdom are already compliant with existing know your customer (KML) and anti-money laundering (AML) laws.
However, the fact that the cryptocurrency market is booming, with Bitcoin seeing its price rise by over $1,000 per day for the past few days, might lead to the British government implementing these regulations with immediate effect.
The absence of regulations in place to regulate the trading and use of the digital currencies can put the money that will be invested by the people at very high risk.
According to a spokesperson from the British Treasury, the new regulations could be implemented by the end of 2018 but the specific details of these proposed regulations have not been established yet.