The UK is really cracking down on the cryptocurrency industry. As other countries and their central banks welcome virtual currencies with open arms, the UK Central Bank is putting its foot down.
Over the past couple of months, we’ve seen a lot from the UK regarding cryptocurrencies. First, Prime Minister Theresa May has come forward and said cryptocurrencies need more regulation. We have also seen the UK central bank end all plans to launch its own cryptocurrency. Not to mention what happened last week. I’ll give you a hint: it’s about the UK Treasury and a cryptocurrency investigation.
Today we got more news from the UK’s central bank regarding its thoughts on digital currencies – the head of the bank announced at the Scottish Economy Conference in Edinburgh that the bank is planning to intensify its efforts to combat the use of virtual currencies in various Activities. For example, cryptocurrencies like bitcoin are used for money laundering.
Similar to what Theresa May announced, Bank of England Governor Mark Carney revealed to the audience at the conference that there must be stricter regulations applied to exchanges. Why? Because it should help curb the illicit use of cryptocurrencies.
It is worth mentioning that Carney has stated that he does not believe the cryptocurrency industry is a threat or poses any risk to the current financial system. However, he said that over time the problem could worsen and traditional institutions would then be too late to make improvements to their systems before the worst possible outcome occurs.
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In addition, I find it important to comment on the bank’s perspective on regulation. Carney said cryptocurrencies offer a lot of innovation, and he’s not against anything they can do. He only believes that regulation would help the industry, allowing this innovation to take place in a more regulated environment. Personally, I agree that more regulation could do wonders for the industry.
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