UK and EU Introduce New Bitcoin Rules For Controlling Tax Evasion

There have been worries in the UK and EU about how the bitcoin may be utilized with money laundering efforts in mind and even for tax evasion. The Treasury has announced that the bitcoin and other cryptocurrencies will be regulated with stronger standards in mind.

The standards for reviewing the bitcoin will be implanted at some point in the early part of 2018. This all comes as the bitcoin continues to evolve as a popular investment opportunity for many people to utilize.

Identity Info

One of the newest rules for bitcoin use is that traders will have to be open about their identities. This ensures that people can be reviewed over how they trade the currency.

The move will prevent people from being able to utilize the general privacy feature that the bitcoin comes with. This is designed to ensure that known laundering parties will be unable to use the bitcoin in the UK or EU.

This is also to prevent terror groups and drug dealers from getting access to the bitcoin. Such groups have long been using the bitcoin because they know they can handle it without having to worry about their identities being revealed.

Platforms Must Report Issues

The EU also states that any platform that offers the bitcoin among other digital currencies must carry out due diligence. They must report on any questionable activities that might be taking place with these currencies in mind. All transactions that appear to be suspicious must be reported to the Treasury for full investigation. This is to ensure that the bitcoin continues to remain a viable investment without being concerning or troubling to the public in terms of how people get onto platforms.

When Will the Rules Be Put Into Place?

The new rules for handling the bitcoin are expected to be put into place in the next few months. The Treasury does acknowledge that the risk of cybercrime being supported by the bitcoin is minimal at this moment but that risk is expected to grow over time. By getting the framework for the rules up and running, it will become easier for the bitcoin to be reviewed carefully.

The general efforts being utilized by the Treasury to help with ensuring the bitcoin is regulated well are designed to keep dramatic threats from being a substantial concern. The Treasury is hoping to see that there are no problems with how the bitcoin may be used in the future and that problems relating to how it works will be resolved carefully.

Impact on the Value

The crackdown on how the bitcoin will be regulated has already made an impact on the value of the currency. It was trading at around $11,800 recent, a record high for the investment. But the news from the Treasury about added regulations has caused the value of the bitcoin to decline down to around $10,500. This is still a massive increase over what it had been months earlier as the bitcoin continues to rise up in value on a regular basis.