European governments including the UK are seeking to strengthen the regulation of bitcoin and other cryptocurrencies in an effort to prevent them being used for money laundering and tax evasion. The anonymity of the virtual currencies has made them popular with drug dealers and other criminals seeking to transfer funds for illegal activities without leaving a trace. Bitcoin’s price surged above $11,000 on Monday after news that the US government had approved plans to regulate digital currencies.
European governments including the UK are seeking to strengthen the regulation of bitcoin and other cryptocurrencies in an effort to prevent them being used for money laundering and tax evasion. The anonymity of the virtual currencies 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 diligence on users and reporting suspicious transactions.