European Union announces crackdown on Bitcoin, currency slumps

Marco Green
December 5, 2017

Cryptocurrency detractors worry that its anonymity helps criminals looking to avoid law enforcement oversight.

Bitcoin's ecosystem, as far as government institutions are concerned, has become a bit of a nuisance when it comes to the legality of things its holders do with the cryptocurrency.

The Treasury hopes to bring transparency to the cryptocurrency.

Replying to a written Parliamentary question in November Mr Barclay said: "The UK government is now negotiating amendments to the 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".

Despite a surge in trading and another record high reached on Sunday, Goldmann Sachs boss as accused the currency of being a vehicle to commit fraud and other illegal activities.

Bitcoin posted a record high against the dollar on Tuesday morning, hitting $11,829 a coin at about 8 a.m. GMT (3 a.m. ET), according to Markets Insider data. Following news of the crackdown, it slumped to $10,554.

European Union countries and the United Kingdom are planning to regulate bitcoin and other cryptocurrencies out of concern for their being used for criminal activity like money laundering and tax evasion.

The main USA derivatives regulator said on Friday it would allow CME Group Inc (CME.O) and CBOE Global Markets Inc (CBOE.O) to list Bitcoin futures contracts, opening the door to added regulation.

However, there are hopes that the creation of futures markets next year will help soothe volatility.

"The government supports the intention behind these amendments".

According to the British finance ministry negotiations over changes to the European Union rules are expected to conclude later this year or in early 2018.

Other reports by Click Lancashire

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