‘Time to grow up’ Treasury plans to regulate Bitcoin welcomed | City & Business | Finance

After a week of headlines and price volatility a treasury spokesman said: “We have clear tax rules for people who use crypto-currencies and like all tax rules, these are kept under review

“We also intend to update regulation to bring virtual currency exchange platforms into anti-money laundering and counter-terrorist financing regulation.”

The move comes after a hectic fortnight for the digital currency after breaking another record on Sunday and climbing to $11,773 (£8,736).

Last week’s volatility capped a 30 per cent surge after dropped down to $9,021 (£6,696) on Thursday.

There was another huge moment in Bitcoin’s move towards the mainstream last week after US derivatives regulator says it will allow CME Group and CBOE Global Markets to list Bitcoin futures paving the way for CME and CBOE to become the first traditional US regulated exchanges to launch trading in Bitcoin-related financial contracts.

As finance firms begin offering Bitcoin to investors, Duncan Donald, CEO of London Academy of Trading told Express.co.uk that with any financial product or service, regulation should be a necessity not a preference.

Mr Donald says, “If Bitcoin is going to take steps to becoming a mainstream monetary solution, then ensuring standard due diligence is adhered to by all participants is a prerequisite”.

Adding that the current Bitcoin buzz means that there is not a banking CEO out there not being asked their thoughts on Bitcoin but without the implementation of regulatory anti-money laundering checks, they won’t be able to join the party.

Positivity for the Treasury’s plans comes from Benjamin Dives, CEO of London Block Exchange who says that its tine for cryptocurrencies to “grow up”. Telling Express.co.uk: “Cryptocurrency fundamentally challenges the traditional institutions that have managed money for centuries. This is exactly what makes it so special, but doesn’t mean that it shouldn’t be regulated.

“Growing up” according to Mr Dives means applying the same standards of rigour for any financial product, which includes full identification of who customers are and where their funds have come from.

Craig Parkin, Associate Partner at Citihub Consulting told Express.co.uk that regulations at this point are “undoubtedly a good thing” and will help further protect investors.

As Bitcoin moves towards the mainstream financial sevices, Mr Parkin says: “Regulations in non-cryptocurrencies are currently being implemented to ensure markets are fairer, more transparent and…

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