European governments and the UK are seeking to strengthen the regulation of bitcoin and other currency in an effort to prevent them being used for money laundering and tax evasion . The Treasury plans to regulate bitcoin and other cryptocurrencies to bring them in line with anti-money laundering and counter-terrorism financial legislation. The anonymity of the virtual currency has made them popular with drug dealers and other criminals seeking to transfer funds for illegal activities without leaving a trace . Proposals have been drawn up for action to be taken across the European Union , requiring cryptocurrency exchanges to comply with existing regulations by carrying out due checks on users and reporting suspicious transactions .
European governments and the UK are seeking to strengthen the regulation of bitcoin and other currency in an effort to prevent them being used for money laundering and tax evasion . The anonymity of the virtual currency has made them popular with drug dealers and other criminals seeking to transfer funds for illegal activities without leaving a trace . Proposals have been drawn up for action to be taken across the European Union , requiring cryptocurrency exchanges to comply with existing regulations by carrying out due checks on users and reporting suspicious transactions .