UK Treasury turns to public for advice on Bitcoin regulation, launches open consultation

The Guardian reports that the UK government is turning to the public for their views on 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 potential 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 in the future.

In addition to consulting with financial regulators, law enforcement personnel and the general public, the Treasury is reaching out to FinTech companies, including those in the Bitcoin space.

On the Digital currencies: Call for Information page, anyone with an interest in digital currency is invited, including: "digital currency developers, digital currency exchanges, digital currency users, investors, academics, think-tanks, other government departments, international counterparts, banks, building societies and other payment service providers, payment scheme companies and e-money providers."

The approach can be compared to that taken by New York State in the proposed "BitLicense". After public hearings on the issue, a proposal as drafted and public comment was opened for a 90-day period. The UK's consultation closes on December 3, 2014, offering roughly 30 days for this stage of the process.

A document outlining the areas of exploration highlights, on a high level, the benefits and risks associated with digital currency. A list of 13 questions invites more detailed insights.

Recognizing that digital currencies are technically not regulated in the UK, the government is looking to introduce regulation while preserving innovation. A Treasury spokesman said:

"We're considering the potential benefits of digital currencies to customers and the technology that underpins them, and whether we should take action to support innovation in this area. We’re also looking at the potential risks, and assessing whether action is required to address any concerns."

In August, Finance Minister George Osborne announced the government's coming initiative as part of remarks on the need to strengthen London's position in financial innovation.