Pressure is growing on the UK government to regulate the trading of bitcoin which many see may have a flow on effect to other countries and may be the beginning of governments to try and legitimize the crypto currency.
In a damming speech, a member of the UK government noted that the current situation surrounding bitcoin and other crypto currencies was a walking time bomb and big changes must be introduced to bring it into line with mainstream investing which means introducing regulations that would be overseen by a government authority.
“Bitcoin and other crypto-assets exist in the wild west industry of crypto-assets. This unregulated industry leaves investors facing numerous risks,” Morgan said. “Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury committee strongly believes that regulation should be introduced.” Said Conservative MP Nicky Morgan
Although new regulations are likely to see the price of Bitcoin drop in the short term, many believe that it will benefit in the long run as investors who are currently sitting on the side lines and refusing to invest will become new customers of bitcoin on the back of more safety.
“As an industry we have been calling for the introduction of proportionate regulation to improve standards and encourage growth,” said Iqbal Gandham, the chair of CryptoUK.
“Self-regulation by the industry was always intended to be a starting point – this must now be matched by government action.” He added.