UK civil servants ponder bitcoin threats - FT

UK civil servants ponder bitcoin threats - FT

UK government officials met yesterday to discuss the security and tax implications of virtual currency bitcoin, according to the Financial Times.

The Future of Money conference, organised by the Foresight Horizon Scanning Centre, saw around 50 civil servants, but no ministers, from Revenue & Customs, the Serious Organised Crime Agency, Home Office and GCHQ gather in London.

The meeting was an attempt to thrash out a response to bitcoin amid concerns that the unregulated virtual currency's anonymity could make it attractive for money laundering and that it falls outside of the tax system.

Among potential responses discussed was the possibility of setting up the world's first regulated bitcoin exchange to help bring the currency into the light by requiring users to prove their identity.

The civil servants who attended will now write one private and one public report on the issue for ministers, says the FT.

UK taxmen, police and spies look at Bitcoin threat - FT (sub)

Comments: (1)

A Finextra member
A Finextra member 15 May, 2013, 07:18Be the first to give this comment the thumbs up 0 likes

Either virtual currencies are made fully transparent for taxation requirements, in order to stop money laundering and the prevention of criminal activity such as the drug trade and terrorism, or ban them entirely.