Bitcoin, is it adoptive in UK?

Considering the UK to be a financial center globally, especially London, we might wonder that they are quite keen about bitcoin and other digital currencies. Digital currency is, after all, the ultimate example of a finance/technology hybrid. Well, you would be right.

However, anti-money laundering regulations should be updated to include Bitcoin and other virtual currencies, the UK Treasury has said. The Metropolitan Police says criminals are using cryptocurrency cash machines to launder money in London. The government’s aim is part of a broader update to the EU rules which are under negotiation. The update, revealed in Parliament last month, would mean that traders would no longer be able to operate anonymously.

The UK has laid down laws relating to cryptocurrencies for:

  • Consumer protection: FCA is the regulator with responsibility for ensuring that financial services are provided in a way that protects consumers and maintains the integrity of the market.
  • Prevention of money laundering: The prevention of money laundering is taken very seriously in the UK and indeed in many countries around the world.
  • Taxation: For once UK businesses were happy to have no regulation. We were told that VAT would most likely be charged on bitcoin service charges, but not bitcoin itself. Therefore an exchange would have to charge VAT on its commission, but not on the bitcoins traded.
  • Foreign regulations: Just because there is so little regulation in the UK, it doesn’t mean that UK businesses aren’t affected by foreign laws. Regulations in the US have a habit of reaching beyond the borders of the 50 states.

The lack of regulation in the UK has caused more problems than opportunities for bitcoin businesses. The biggest problem regarding bitcoin in the UK is– access to UK banking services. In short, there isn’t any. With the regulatory picture unclear, banks consider it too risky to offer bitcoin businesses a bank account.

In jurisdictions around the world, lawmakers and regulators are considering if and how to bring digital currencies under their regulatory frameworks.

Until the inevitable question of regulation is settled, one way or another, digital currency businesses will be unable reach their true potential.

Bitcoin and Ethereum/Bitcoinnewsboards

What will happen Ethereum if Bitcoin prices suddenly fall?

Bitcoin was invented by the mysterious Satoshi Nakamoto in 2008 and released as an open-source software in early 2009. The first transaction took place between Nakamoto and an early adopter of bitcoin in January 2009. The first real-world transaction happened in 2010 when a bitcoin miner bought two pizzas from a Papa John’s in Florida for 10,000 bitcoins.

Bitcoin really began to rally in October and November of 2013. The currency was trading at around $100 in early October. It reached around $195 by the end of the month. There was a rally caused by new bitcoin exchanges and miners in China entering the marketplace. This period was when the Mt. Gox was involved in around 70% of all bitcoin transactions.

Bitcoin has now nearly halved in price after topping $19,800 in mid-December. But the digital currency remains more than 1,100 percent higher over the last 12 months, according to Coinbase.

On the other hand, Ethereum is a rising star in the cryptocurrency world. Launched in 2015, the value of ether (ethereum’s currency) has increased rapidly.  It has quickly become the second largest digital currency in just over two years, booming in value and spurring the rise of hundreds of new rivals to Bitcoin.

However just before Christmas 2017, it suddenly pulled back from a price of more than $850 to around $690 – a drop of around 20 per cent – although it has since showed some signs of recovering. Last year saw months of increase in the price of Ethereum and rival cryptocurrencies like Bitcoin. At the start of 2017, one coin was worth around $10.

Cryptocurrencies across the board took a hit, with all of the top 100 digital coins dropping in value. In fact, nearly every major cryptocurrency suffered massive losses during the day. More than $160 billion was wiped off the value of all cryptocurrencies listed by the website, highlighting the remarkable volatility in the market.

In an interview with, South Korean Finance Minister said shutting down cryptocurrency exchanges is still an option, but such measures would need “serious” discussion at the government level. This gave traders hope that it would not completely ban trading but rather introduce more regulation.

MORE than 200,000 people have signed a petition in South Korea against cryptocurrency regulations after government plans to curb speculation saw the value of Bitcoin and Ethereum plunge.

Hence, it’s tough out there for all the cryptocurrency investors. At the latest, the price of bitcoin and ethereum dropped in the double-digit percents– bitcoin hitting a month long low of $11,191.59.