Is London Becoming The World's Bitcoin Hub?

Last month, the British government threw its weight behind bitcoin saying it would create new regulations to prevent money laundering through cryptocurrency exchanges and work together with fintech companies to come up with a set of rules to govern the use of cryptocurrencies. The proposal marked a major step in making the UK a hub for investors and small businesses interested in digital currencies. Now, London is quickly making a name for itself as one of the most bitcoin-friendly cities in the world.

Although London has made a name as the largest currency trading destination, for many the city doesn't seem like a home for bitcoin. With Silicon Valley launching some of the world's most successful tech companies and New York famous for its financial clout, London isn't often pictured as an innovative place for bitcoin enthusiasts. However, the city has made its intention to create an environment that fosters bitcoin innovation clear in recent months as the bitcoin scene continues to grow. The City of London's government has said that growth opportunities offered by finance technology like digital currencies are a welcome addition to the city's economy and Finance Minister George Osborne has openly expressed his desire to make Britain a leader in the fintech space.

that it will be that positive attitude which will attract more and more bitcoin firms to bring their business to London.

In addition to Britain's decision to work together with digital currency businesses to develop a set of standards to govern cryptocurrencies, the region is also making it easier for bitcoin-based businesses to file their taxes. In 2014, Britain decided to amend its tax law and make bitcoin trades exempt from value added taxes, something most other countries have yet to decide.

Swiss Bank

is

to join London's fintech scene later this month by opening a dedicated blockchain technology innovation lab which will research ways to integrate blockchain into financial services. Although UBS is not the first bank to tout the potential benefits of blockchain, the technology powering bitcoin, it is the first to go public with its research plans.