UK next to pledge support for innovation as they look into regulating Bitcoin

UK Finance Minister George Osborne expressed some cautious support for Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and virtual currencies as the government looks to take its first steps toward Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.

The comments were made during a talk on a broader package of measures to strengthen London's position in financial innovation, and thereby preserve the city's status as a leading financial center.

Said Osborne on Bitcoin:

"The government will look at the potential virtual and digital currencies have for achieving positive change and for encouraging innovation in our world leading financial sector, as well as the potential risks."

The announcement echoes France's recent lukewarm statements on its intended approach to regulating Bitcoin. Such expressions have hitherto been rarely made by governments, save for those of the Bitcoin-friendly paradises such as Isle of Man and Jersey.

One major opportunity for financial innovation is "alternative finance". Financial services make up 8% of the UK's economy. Conventional banks currently dominate the lending industry. Osborne believes that small and medium businesses (SME's) are key to economic growth, but they have little recourse when rejected by traditional lenders.

New, alternative forms of financing, such as peer-to-peer (p2p) lending, will help them overcome this hurdle and cut out the middleman. Banks rejecting SMEs for financing would be required to refer them to 3rd parties, who would then try to connect them with challenger banks and alternative lenders.

Bitcoin and its offshoots have become key instruments for crowdfunding initiatives.