UK Could Become Bitcoin Hub With New Regulations

The UK treasury pushed digital currencies one step closer to mainstream adoption this week after releasing a report detailing plans to prevent money laundering scams that operate using cryptocurrencies. The proposed

would put the UK at the center of the digital currency revolution as they are likely to attract businesses dealing in bitcoin to the region.

Earlier this year, the

released a research paper detailing the benefits of a central bank issuing a digital currency. The paper suggested that the BOE was considering the possibility of regulating digital currencies alongside the pound and demonstrated England's growing interest in cryptocurrencies.

UK Chancellor George Osborne's budget package included rules that will help regulate digital currencies and protect against money-laundering scams. While many say the lack of regulation in the cryptocurrency world is part of its draw, others say mainstream adoption is impossible without some regulatory intervention. Businesses dealing in bitcoin have found it difficult to engage with banks as the industry still carries a great deal of risk that financial institutions are not willing to take on; but the UK's regulations could help change that.

The UK Treasury also noted the potential for innovation in other sectors using blockchain, the ledger-like technology that cryptocurrencies run on. Like most bitcoin enthusiasts, the UK noted that the ability of blockchain to carry out real-time transactions without the costs associated with a middle man could make it a useful tool in a range of industries outside the financial sector.