Bitcoin

Name

Course

Institution

Date

Bitcoin Regulations in the UK

In the UK, absence of regulations has sled to the creation of more problems than benefits to Bitcoin as a currency. Since the virtual currency systems are unable to determine the regulation that guides them, they are left with the option of taking regulatory measures in their operations. The biggest problem that Bitcoin as a currency faces in the UK is lack of banking facilities. All the banks in the country have considered it a risky investment to offer banking services to Bitcoin as a currency since the regulation picture is still unclear. In most jurisdictions around the world, most regulators and legislators are considering ways of bringing digital currencies like Bitcoin under their frameworks of regulation.

These bodies are, however, unsure of whether and when they will take this action. This has left most entrepreneurs transact in Bitcoin guessing on the form and impact of these new regulations on their established businesses. Unless UK solves the existing problem of regulation, digital currencies with Bitcoin in the front line, will not be able to reach greater heights in the economic market. Legislative bodies have not properly regulated the Bitcoin industry to ensure all operations carried out are in line with the requirements of the laws. Bitcoin as a currency still remains to be unregulated in the digital currency framework due to its complex nature. This is the reason why most bodies do not want anything to do with setting up laws that will regulate the currency.

The European Banking Authority (EBA) has established that digital currencies should be regulated to ensure consumers are protected from financial crimes. This will help in enhancing the financial stability of Europe. Pan-European Regulation will aid in enhancing the European market that has for long remained a monopoly in the region. EBA has requested the European council, Parliament and commission to formulate a digital currency...