Many people were pessimistic about the adoption of the cryptocurrencies. A good number thought that currencies would fail because people will not consider using them for transactions. However, the reality currently is the opposite of such a prediction. Bitcoin is the most successful cryptocurrency. Millions of people are now using the cryptocurrency, and the increased demand has seen it its value go beyond the expectations of many people. The value of the one bitcoin has even hit a high of $11,200.
The current is not only finding use in legal activities but also in illegal ones such as money laundering. It is the reason why the UK government is considering coming up with a regulation on the usage of the currency. The government claims that the regulation will be an update to the rules under negotiation in the EU. The UK parliament revealed that the key aspect that the regulation will change is the anonymous operation by the users. In areas such as New York, the authorities have already put the cryptocurrencies under tight regulation. The attention directed to the cryptocurrencies is just an indication of the success of these currencies. A Bitcoin expert at the University of Cambridge said that the tighter regulations would encourage the companies to self-police and weed any bad actors on the platform.
Different authorities have issued warnings about the increasing popularity of the currencies with criminals. UK’s Scotland Yard issued a similar warning at a press briefing. The Serious and Organized Crime Command stated that criminal groups were among the first to adopt the use of the cryptocurrencies. It is because the currencies enabled them to evade statutory regulations and checks in place to prevent money laundering. The anonymity enabled the criminals to purchase illegal commodities on sites in the dark market while maintaining anonymity.
A spokesman on the Treasury stated that there were clear guidelines on taxation that the government expected legitimate cryptocurrency users to follow. He further confirmed that efforts were underway to bring the cryptocurrency platforms into the counter-terrorist financing and anti-money laundering regulations.
Various economic experts warned users against investing in the currencies because of its highly unregulated nature. The deputy governor of the Bank of England warned potential investors that there is not government or central bank that stands behind the various cryptocurrencies. Regardless of these warnings currently some people became billionaires by investing in Bitcoin.