The British government is going to introduce strict regulations of bitcoin and other cryptocurrencies. They hope that these measures will help to combat crimes during tax evasion and money laundering. In this way cryptocurrencies will be under the purview of anti-money laundering and counter-terrorism financing legislation.
We have clear tax rules for people who use cryptocurrencies, and like all tax rules, these are kept under review. We also intend to update regulation to bring virtual currency exchange platforms into anti-money laundering and counter-terrorist financing regulation.
Spokesperson of the UK Treasury
Some British media like The Sun and The Telegraph have named this statement as a ‘crackdown on cryptocurrencies’. Also the Treasury’s intent to regulate cryptocurrencies comes amid reports of drug dealers in London allegedly laundering cash at bitcoin ATMs in the city.
The plan to introduce regulations for cryptocurrencies was first revealed by the economic secretary to the Treasury Stephen Barclay in late October 2017 year when he was speaking in the UK Parliament.