Bitcoin traders seek Government regulation for digital currency

E-commerce

by CBR Staff Writer| 06 September 2013

Smaller banks, finance houses and Bitcoin firms said that major banks are reluctant to open new business accounts over concerns that the currency would encourage financial crime.

Bitcoin traders in Britain have asked the government to bring in regulation for the digital currency so it can be used for new businesses and to promote growth.

However, the Guardian reports that smaller banks, finance houses and Bitcoin firms said that major banks are reluctant to open new business accounts over concerns that the currency would encourage financial crime.

US and German regulators recently launched regulations for Bitcoin, with one US judge ruling that the digital token is a currency and the German finance ministry authorising its use for private transactions.

A spokesperson of the UK Financial Conduct Authority said that it will 'keep an eye' on Bitcoin developments.

"Whilst the FCA does not regulate Bitcoins, businesses providing services related to Bitcoins or other digital currencies should consider whether they are carrying on regulated activities."

The FCA also revealed that the agency is keenly studying virtual currencies and relevant regulations.

The virtual currency machines have also been targeted by cyber hackers with the hope of benefiting from the increasing value of the virtual currency.

Bitcoin has recently been added to Oxford Dictionaries Online (ODO).

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