UK Treasury Wants Advice from Bitcoin Community - Essay Example

As Bitcoin is becoming increasingly popular in the UK region, the Treasury thought some advice from the Bitcoin community would help Britain lead in financial technology.

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The United Kingdom hopes to lead globally in financial technology. To make the dream come true, the treasury is depending on users of crypto currencies for a fact-finding mission.

The treasury wishes to learn as much as they can about digital currencies from group of Bitcoin users. The government also approached the bitcoin community asking for advice on how to deal with crypto currencies.

All these steps were taken as an effort to strengthen Britain’s lead in the global competition in the financial technology industry.

The Treasury is requesting for more information on new crypto currencies from not only the public but also from professionals like financial regulators and law enforcement agencies. They have also enquired FinTech firms including bitcoin aficionados.

Bitcoin is widely unregulated all over the globe. Even though New York’s department of financial services came up with a set of regulations called the bitlicense to enforce some restrictions on the crypto currency, Bitcoin still remains unregulated.

The Treasury has informed that it will be study examples of regulation that are imposed in other countries, but it was stresses that the lead will come from reactions to its call for information.

A Treasury spokesman said that digital currencies and exchanges specific to digital currencies are unregulated in the United Kingdom at present. He mentioned that the Treasury is considering the probable benefits of crypto currencies that users enjoy.

They will also study the underlying technology behind Bitcoin and then decide whether they must take any steps to support the innovation in UK.

They are also studying the potential risks of using Bitcoins and assessing if any action is needed to address the concerns.

The fact-finding mission came after the announcement by Chancellor George Osborne in August. He informed that the government plans to emphasis on the crypto currency and FinTech industry in general.

At the time, he said that only by connecting innovations in finance, and their existing skills and knowledge in financial services, they can ensure that the financial sector can meet the different needs of companies and customers around the globe.

It will also help them create the growth and jobs they want to project in the future.

Founder of the Bitcoin bank called Circle, Jeremy Allaire shared his opinion about Bitcoin regulation in an interview.

He said described the initial drafts of New York’s Bitlicense as “over-reaching.” However, he informed that he supports regulation of crypto currencies in general.

He stated that the digital currency firms, particularly those that act as guardians of user’s digital assets and the companies that offer exchange and conversion between any local currency and crypto currency, should be regulated to follow the same rules set of rules that existing money transfer businesses and payment institutions in UK follow.

All such opinions and other information collected from various Bitcoin companies and customers will be used by the Treasury to determine what the next steps should be.