Bitcoin Rules To Be Outlined In UK Budget - Essay Example

High Chances That Bitcoin Measures Will Be Outlined in Bugdet 2015

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The United Kingdom, London especially, is the home for one of the biggest share of Bitcoin businesses and it is expected that this liking and acceptance towards the virtual currency will be taken a step further in the budget of 2015.

Among the most important days on UK political calendar is the budget. The Chancellor announces new taxation rules and financial measures that can help boost the economy. The public spending level is set too.

What is declared during this time is monitored closely by people as it can affect wealth worth millions and thus individuals and businesses.

Very recently, It was informed by the UK Treasury that they were leading a study on Bitcoin’s potential to serve as an innovative factor for financial commerce.

The treasury worked with various government agencies and evaluated the potential and risks associated with Bitcoin investment. Positive results in the study might lead to proposals for the budget of 2015.

Therefore, it is very likely that Bitcoin will be included in the Chancellor’s budget announcements related to public spending and the economy. While it is too early to say for sure what announcement will be made, but it is being assumed that the budget may include processes to help Bitcoin businesses with increasing finances.

The budget announcement would clarify any regulations applicable for Bitcoin businesses. It may also set the general tone of United Kingdom’s attitude towards use of bitcoins.

As far as Bitcoin businesses are concerned, the United Kingdom seems to be among the friendliest legal jurisdiction. After New York’s Bitlicense proposal was highly criticized, the Chancellor proclaimed his support for Bitcoin.

She said in a statement that he believes London could be made the Fin Tech capital of the world. His high hopes for the city echoed his liking for Bitcoin too.

The Chancellor George Osborne is remembered as the very first high government official who bought bitcoins.

Today, London is known for having the largest share of Bitcoin investments in Europe.

Venture Capital investment has recently increased more in European companies than American companies.

This recent increase might be a result of jurisdictional competition between London and New York over hundreds of millions worth of Bitcoin investments. There is no doubt that London is winning.

Bitcoin taxation rules imposed in London are the friendliest of all. All English Speaking jurisdictions classified Bitcoin as property. While it is supposed to be taxed like property, London taxes Bitcoins like currency.

However, there have been some complains about British Banks for closing bank accounts of Bitcoin businesses aggressively.

A spokesman from the treasury stated that they couldn’t to comment on individual cases. It was suggested in the statement that everyone should wait for the budget.

If the new regulatory measures are in favor to Bitcoin, like it seems, all the problems that Bitcoin businesses face will be fully addressed.

The UK government’s declaration about setting up a FinTech company in UK further established the probability that the chancellor will outline the bitcoin measures in 2015 budget.

Chancellor’s statement “We stand at the dawn of a new era in banking” established that the financial world might soon see a remarkable change.