With Bitcoin hitting all-time highs seemingly every hour, the Treasury has indicated that Europe is likely to pass a directive across the EU that will require local regulators, in the UK the Financial Conduct Authority (FCA), to regulate bitcoin and other crypto currencies.
We suggest, the simple answer is: anonymity.
Today, you can open a bitcoin wallet without any requirement to provide ID and either use software to mine for and store your own bitcoins or buy them. By the way ‘mining’ could take around 100 years with your PC working continuously to find a block of bitcoins (a unique string of encryption code). You can of course buy them at the astronomical prices.
The issue is anonymity.
No doubt cryptocurrencies are being used for money laundering and other proceeds of crime. Forcing ID proof will no doubt impact on both the current ‘gold rush’ and we all know how gold rushes turn out for smaller investors and prospectors as well as stemming the flow of illegal or undeclared money and wealth.