UK Treasury looking to regulate cryptocurrencies

By Jonathan Lawrence

The UK Treasury is looking to regulate cryptocurrencies. Stephen Barclay, the economic secretary to the UK Treasury, recently answered a Parliamentary question as to what steps his department was taking to regulate (a) Bitcoin and (b) other cryptocurrencies. Mr Barclay answered that the UK government is currently negotiating amendments to the European Union (EU) Fourth Anti-Money Laundering Directive that will bring virtual currency exchange platforms and custodian wallet providers into Anti-Money Laundering and Counter-Terrorist Financing regulation, which will result in these firms’ activities being overseen by national competent authorities for these areas. He said that the UK government supports the intention behind these amendments. They expect these negotiations to conclude at an EU level in late 2017/early 2018. This development follows a recent UK Financial Conduct Authority warning on cryptocurrencies.

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