UK court hands down jurisdictional ruling on Dr. Craig Wright’s libel claim, but fight is far from over

A U.K. High Court judge has delivered a jurisdictional ruling on Dr. Craig Wright’s legal claim for libel against Roger Ver, but the battle on the merits is not yet over.

Wright filed a libel claim in the courts of England and Wales against the Bitcoin.com CEO in May in response to a video posted on Bitcoin.com’s YouTube channel in April featuring Ver who declared, “Craig Wright is a liar and fraud. So sue me. Again.” Wright has initiated a series of legal actions against individuals and parties who claim he is a fraud or otherwise deny his statement that he is the man behind the pseudonym Satoshi Nakamoto, the creator of Bitcoin.

On Wednesday, however, Wright was dealt with a procedural setback after U.K. High Court Judge Matthew Nicklin ruled that the courts of England and Wales were not the proper jurisdiction over the libel case against Ver. In his ruling, Nicklin wrote:

 “The claimant has not satisfied me that England and Wales is clearly the most appropriate place to bring his action for defamation over the publications complained of. In consequence, the court has no jurisdiction to hear and determine the action.”

It’s worth noting that this ruling does not at all address the merits of Wright’s claim (i.e., whether Ver committed libel by calling Wright a fraud). The decision was merely a procedural one focused on whether England and Wales was the proper jurisdiction to hear Wright’s claim against Ver. The U.K. Court focussed heavily on whether Wright has a global reputation even though he has lived in the U.K. since 2015; this would suggest that a libel victim residing in the U.K. could not sue in English courts if that libel victim was known globally. That would beg the question of where — if anywhere — it is appropriate for a libel victim to sue after having moved to the U.K. for several years. In today’s online and social media age, where commentary about people travels quickly across the globe, it is difficult to see how anyone could meet the supposed jurisdictional burden for suing in England imposed by the U.K. High Court judge in this particular instance.

However, Wright is not planning to back down and intends to appeal the judgment on jurisdiction, so that he can reach a decision on the merits. In contrast, Ver had a chance to present his case in court, but instead of presenting a defense on the merits, sought to avoid the case on jurisdictional grounds by trying to argue the U.S. is a more appropriate jurisdiction — an odd argument given that Ver has renounced his U.S. citizenship and is neither domiciled nor a resident in the country.

Wright is seeking £100,000 in monetary damages as well as an undertaking restraining Ver and any of his affiliated entities from making further allegations that deny the nChain chief scientist’s claim to being Satoshi Nakamoto. The merits have yet to be decided, as the parties continue to battle over the question of which country’s courts have jurisdiction to hear the case.

London police nab prolific cybercriminal

London police nab prolific cybercriminal, seize $700,000 in BTC

Undercover British police took a little train ride last December. It wasn’t for a police conference or to participate in a training exercise; instead, it was the perfect opportunity to corral a fugitive they had finally caught up with after two years. The fugitive was Grant West, and he had become known as one of the most prolific cybercriminals in the world.

Going by the name of “Courvoisier” online, he allegedly concocted a series of cybercrimes directed at more than 100 companies between July and December 2015. According to investigators, West targeted gambling shops, cellphone companies and supermarkets, using phishing emails sent to the stores’ customers that resulted in the individuals giving up their bank details, credit card numbers and passwords.

West used this information to make a small fortune on the Dark Web, selling the data to unscrupulous scammers. He received payments for his services, and converted them all to BTC—when he was arrested, over $700,000 in BTC was found in several wallets held on his laptop.

Under many circumstances, law enforcement officers have a difficult time gathering intel, especially when criminals use the anonymity of cryptocurrency to their advantage. However, when West was nabbed, his laptop was turned on and unlocked, and investigators were able to walk right in. They found his encrypted addresses on the computer, which helped authorities secure their case against him.

According to Sharon Cohen Levin, a money-laundering authority who has worked for the U.S. Attorney’s Manhattan office, investigators often have the ability to know that cryptocurrency has been utilized in the commission of a crime, but they aren’t able to identify the individuals. Having access to West’s laptop changed that significantly in this case. Levin explained to USA Today, “There is not necessarily any place, for example, that you can subpoena to find information about Bitcoin-related activity.”

The arrest comes after a two-year undercover operation led by Scotland Yard. The arrest was led by Mick Gallagher, who said, “These people generally feel they can operate with impunity, that they can’t be touched. We have now debunked that.”

West was found innocently traveling on the train, oblivious to what was about to go down. He pleaded guilty to the charges and will stand before a judge on May 25 to learn his fate. His girlfriend and alleged accomplice, Rachael Brookes, was sentenced to community service for two years, authorities said.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Financial watchdog confirms crypto derivatives' regulatory status in UK

Financial watchdog confirms crypto derivatives’ regulatory status in UK

The UK might finally be stepping forward to recognize cryptocurrencies. I say might because the confirmation of regulatory requirements for cryptocurrency derivatives by the Financial Conduct Authority (FCA) is just a small piece of the puzzle. The FCA has no regulatory scope over cryptocurrencies, but it does have an impact on future regulations.

The latest statement from the FCA specifies that cryptocurrency derivatives, under the Markets in Financial Instruments Directive II, can be defined as financial instruments. It stipulates that firms involved in regulated derivative-based activities must comply with the FCA’s Handbook rules as well as all applicable European Union (EU) provisions. The report added that companies “dealing in, arranging transactions in, advising on or providing other services that amount to regulated activities in relation to derivatives that reference either cryptocurrencies or tokens issued through an initial coin offering (ICO), will require authorisation by the FCA.”

Some of the transaction types that could be required to conform to regulations include cryptocurrency futures, cryptocurrency contracts for differences and cryptocurrency options. The FCA handbook provides a lot of the information necessary for firms to determine if their products would need to adhere to FCA policies.
In March, the FCA launched a cryptocurrency task force with the Bank of England to explore how to regulate and control the cryptocurrency sector. It planned to release an analytical report on cryptocurrencies later this year. John van Reenen, an MIT Professor of Economics, recently said that the UK would more than likely be taking a favorable stance on cryptocurrencies; however, the latest measures seem to indicate a different story.

Several analysts have indicated that, with the positivity shown by the FCA, the UK might become an attractive hub for blockchain startups and fintech companies. As the world continues to—slowly—embrace cryptocurrencies, the FCA shows that it is trying to be one step ahead of the rest. UK authorities are being pushed to create a cryptocurrency strategy ahead of the EU. Otherwise, the UK won’t have an edge on the competition.

The FCA has rightfully seen investors’ appetite for cryptocurrency investment vehicles such as derivatives. Their proactive approach should send a clear message that the country is open to the idea, even though regulations still don’t exist, and is looking to become a leader in the cryptocurrency industry.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Financial analyst drags Facebook to court over scam crypto ads

Financial analyst drags Facebook to court over scam crypto ads

Amid the bad press and the fallout from the Cambridge Analytica data theft, a new development will see social media giant Facebook under renewed pressure.

Martin Lewis, founder of consumer help site MoneySavingExpert.com, announced that he is suing Facebook in the UK High Court for defamation. Lewis is considered a popular figure in the UK as he also presents The Martin Lewis Money Show on ITV as well as being the founder of the Money and Mental Health Policy Institute.

In his suit, Lewis claimed Facebook published well over 50 fake advertisements, which were seen on a regular basis by several million people across the United Kingdom. The adverts allegedly used Lewis’s image to promote a fake product or investment scams that serious effects on the reputation of the popular presenter.

The most popular of these Facebook ads were cryptocurrency-linked ‘Bitcoin Code’ or ‘Cloud Trader,’ which Lewis said were fronts for binary trading firms operating outside the European Union. These get rich quick schemes are almost always invariably scams and are strongly condemned by the Financial Conduct Authority in the UK.

As with such suits, Lewis will not be seeking personal damages but only exemplary damages with all possible proceeds donated to charity.

Lewis said he had spent the past year fighting to stop Facebook from allowing scammers to use his name to rip off vulnerable people, some of whom have been duped into investing £100,000 in the alleged con.

“I’m not the only public face this has happened to. It’s time Facebook was made to take responsibility. It claims to be a platform not a publisher—yet this isn’t just a post on a web forum, it is being paid to publish, promulgate and promote what are often fraudulent enterprises. My hope is this lawsuit will force it to change its system. Nothing else has worked. People need protection,” Lewis said in a statement.

Lewis’s lawyer, Mark Lewis, said Facebook is not above the law and cannot think it is untouchable either. He said that they will ask the court to seek exemplary damages as the price of ‘causing misery to others’ and not just a simple accounting exercise.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Strong demand drive cryptocurrency spread betting

Strong demand drive cryptocurrency spread betting, CFDs in UK

Strong demand for alternative forms of speculating on cryptocurrency is driving exchanges in the UK to offer cryptocurrency contracts for difference (CFDs) and spread betting, with CMC Markets announcing new products this week.

Initially to be restricted to professional traders, CMC’s cryptocurrency contracts for difference and spread betting products provide an investment similar to derivatives, allowing for greater trading flexibility and leverage.

The company, which is owned by global investment banking giants Goldman Sachs, said the decision to launch these new products was driven by increasing demand from their clients over the last 12 months.

Grant Foley, of CMC Markets, said the firm decided to limit the offering exclusively to its professional clients—for now—since they “recognise that cryptocurrencies can be regarded as a volatile market.”

Contracts for difference are independent instruments, tacked to the price of an underlying market. Traders can buy or sell, without ever owning the underlying asset, and agree to settle at some future date for the difference. Crucially, contracts for difference are traded on margin, providing traders with substantial leverage on each CFD position.

Spread betting is a similar model, but takes the form of a bet or wager, directly with the market-maker. For every favourable point movement, traders win an additional multiple of their per-point stake.

Both these forms of trading are traditionally consider risky—and especially so, when coupled with volatile markets.

In response, Foley urged investors to conduct their own extensive research before deciding whether to invest, saying, “We have built our bitcoin [BTC] and ethereum cryptocurrency offering with our ‎clients in mind. Like all other financial instruments we offer, we always ‎recommend that clients understand the risks and conduct thorough research ‎before trading.”

Yet in spite of the dangers, cryptocurrency CFDs have already proven popular amongst traders on other platforms.

In launching the service, CMC Markets joins the likes of IG, Plus500, Admiral Markets, CityIndex and more, in offering innovative alternatives to owning cryptocurrency outright.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Mini-POS accepts Bitcoin Cash payments in-store

Mini-POS accepts Bitcoin Cash payments in-store

Brick-and-mortar stores will soon have a tool at their disposal to accept Bitcoin Cash payments. A group of developers out of the UK as created a point-of-sale (POS) server, the Mini-POS, which will facilitate 0-confirmation BCH transactions right in the store. It’s another notch in the belt for the cryptocurrency, and shows its staying power.

The Mini-POS server allows for any smart device, such as an Android phone or tablet or an iPhone or iPad, to be connected to it to run the software. Both the server and the terminal are small enough to fit in a shirt pocket. The system is compatible with a web browser, and all transaction fees are paid for by the sender, so the commercial entity incurs no additional transactional fees. The device does not store any private keys, meaning the user’s information is not compromised.

Using the device is simple. The merchant enters the amount to be charged into the terminal, and the server looks up the exchange rates in real time. A QR code is generated with the merchant’s receiving address, which the client scans to send the payment. Transactions take approximately 10 to 15 seconds.

The Mini-POS offers both Bluetooth and Wi-Fi capability, as well as an Ethernet connection. The kit, which includes a server and terminal, is currently available for purchase for $200, and an additional terminal costs $75. If only a server is desired, it has a price tag of $125. The company plans on starting to ship units this summer.

One unit is already installed and is being beta-tested in Newport, UK. Nine more units have already been ordered by merchants across the globe—five in the US, three in the UK and one in Australia. Because it’s virtually an Internet-based system, it is a viable solution for merchants in any place around the world.

There are already several options available for those that want to accept BCH payments. Coinify, Gourl and Coinpayments offer solutions; however, the Mini-POS is the only POS option available for installation, and the only with no recurring fees. Due to its small footprint, it would be an easy option to offer, without infringing on existing real estate space in the store.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Coinbase finds a friend in Barclays bank

Coinbase finds a friend in Barclays bank

There’s a little bit of possible good news for the cryptocurrency community after the most recent drop in trading. Coinbase has inked a deal with Barclays bank out of the UK. In a world where most financial giants are turning their noses up at cryptocurrencies, Barclays allowed Coinbase to open an account with the bank, making it easier for British traders to move their crypto to fiat and vice versa. Bank transfers through Barclays will be available within the next couple of weeks.

In an interview with CNBC, Coinbase UK CEO Zeeshan Feroz  said the initial rollout will involve “giving a small number of institutional users access to Faster Payments,” followed by a launch to all UK customers to make “the Coinbase experience increasingly easier.” Due to the announcement, analysts have predicted an increase in trading from crypto fans in the UK.

Despite still dealing with a couple of litigious headaches, Coinbase had another boost recently. The British Financial Conduct Authority gave the exchange its blessing for an e-money license, which will enable Coinbase to add support for the Faster Payment Service (FPS). FPS transactions can be completed in less than a day, provided both the sending and the receiving banks subscribe to the service. The license will also give Coinbase access to an additional 23 countries across Europe.

Coinbase is a popular platform for buying and selling several cryptocurrencies. It also operates the GDAX crypto exchange. Coinbase has supported legacy Bitcoin (BTC), Ethereum and Litecoin for some time, and added Bitcoin Cash as an asset in December 2017. Almost as soon as it was launched, Bitcoin Cash was pulled over rumors of insider trading. Those rumors have led to at least one pending lawsuit, with the possibility of more to follow.

Barclays bank is a multinational financial institution headquartered in London. It operates in more than 40 countries and offers four types of businesses and has assets of more than $1.5 trillion. It is listed on the London Stock Exchange and on the New York Stock Exchange. Its largest shareholder is Qatar Holdings, an investment vehicle of the State of Qatar.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper. Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Bank of England governor calls for regulation to end crypto 'anarchy'

Bank of England governor calls for regulation to end crypto ‘anarchy’

And no, England will not have a national cryptocurrency soon, he says.

Amid cryptocurrencies sprouting left and right like mushrooms, and with cryptocurrency values playing rollercoaster, it’s not unexpected that regulators will want some order to the madness. And Bank of England governor Mark Carney wants regulation to tame the unruly cryptocurrency trade.

“The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system,” Bank of England governor Mark Carney said in a speech at Bloomberg’s European headquarters in London.

And while he agrees that cryptocurrency may be “the future of money,” he says the cryptocurrencies currently in existence are not “that future.”

“It does point the way in many respects to the future of money,” Carney said. “For many reasons the crypto-assets in your digital wallets are unlikely to be the future of money.”

He also laments the volatility of cryptocurrencies, which he calculated to be on average over 25 times that of the US equities market last year, implying their lack of intrinsic value. He does not, however, dismiss cryptocurrencies or blockchain technology. He just thinks that regulations must be put in place to protect the market and ensure illegal activities don’t thrive.

“But that is not meant to dismiss them. Their core technology is already having an impact. Bringing crypto-assets into the regulatory tent could potentially catalyze innovations to serve the public better.”

“A better path would be to regulate elements of the crypto-asset ecosystem to combat illicit activities, promote market integrity, and protect the safety and soundness of the financial system,” he said. “Being part of the financial system brings enormous privileges, but with them great responsibilities.”

While crypto-enthusiasts enjoy the current freedom of the industry, several experts have been pointing out that this “anarchy” can’t go on forever. And because some malicious actors take advantage of loopholes, both legal and technological, that enable them to instigate cybercrime seemingly without repercussions, protective rules are being considered by legislators. KYC/AML (know-your-client/anti-money laundering) and anti-terrorism financing have been in place to help combat such crimes. In the US, legislators admit there are still “gaps” to be filled, but say they are confident they can get on top of it.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

UK financial regulator steps up scrutiny of ICOs

The chief financial regulator in the UK is stepping up its scrutiny of ICOs, as it considers whether further legislative measures may be required.

The Financial Conduct Authority (FCA), the body responsible for market oversight in the UK, announced it was conducting further research into the extent to which ICOs are covered by current financial regulations, and whether further measures could be introduced to regulate the funding model.

The announcement, as part of a feedback statement released last week, goes further than the warnings already issued by the regulator back in September, designed to highlight the risks of investing in ICOs.

In September, the regulator cautioned against the unregulated nature of many ICOs, and warned retail investors in particular that ICOs were “very high-risk, speculative investments,” without the same investor protections as other asset classes.

The latest feedback statement said the Financial Conduct Authority would now engage in a more in-depth examination of developments since its earlier research papers, to inform the regulator on the latest regulatory risks associated with initial coin offerings and help shape policy on ICOs for future.

Pending the outcome of the report, the next step could see draft proposals drawn up to regulate ICOs, or firmer guidance on how existing securities laws apply in the ICO use case.

Price volatility and fraud risk were also among the specifically highlighted risks associated with investing in ICOs, with the regulator calling on ICOs promoters to conduct their offerings for ‘consumer benefit’.

The development comes at a time of increasing scrutiny for ICOs worldwide, as financial regulators rush to identify the right regulatory response amid a surge in activity.

ICOs have enjoyed exponential growth in 2017, raising as much as £2.3 billion from the sale of tokens and Simple Agreements for Future Tokens (SAFTs).

Regulators across the world have urged caution, with some going further—most notably in China, where an outright ban on ICOs marked the most decisive global response thus far.

While there are no suggestions the FCA could move to ban ICOs in the UK, their findings may point to the need for further regulation to tighten up the rules for initial coin offerings.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

UK financial regulator steps up scrutiny of ICOs

The chief financial regulator in the UK is stepping up its scrutiny of ICOs, as it considers whether further legislative measures may be required.

The Financial Conduct Authority (FCA), the body responsible for market oversight in the UK, announced it was conducting further research into the extent to which ICOs are covered by current financial regulations, and whether further measures could be introduced to regulate the funding model.

The announcement, as part of a feedback statement released last week, goes further than the warnings already issued by the regulator back in September, designed to highlight the risks of investing in ICOs.

In September, the regulator cautioned against the unregulated nature of many ICOs, and warned retail investors in particular that ICOs were “very high-risk, speculative investments,” without the same investor protections as other asset classes.

The latest feedback statement said the Financial Conduct Authority would now engage in a more in-depth examination of developments since its earlier research papers, to inform the regulator on the latest regulatory risks associated with initial coin offerings and help shape policy on ICOs for future.

Pending the outcome of the report, the next step could see draft proposals drawn up to regulate ICOs, or firmer guidance on how existing securities laws apply in the ICO use case.

Price volatility and fraud risk were also among the specifically highlighted risks associated with investing in ICOs, with the regulator calling on ICOs promoters to conduct their offerings for ‘consumer benefit’.

The development comes at a time of increasing scrutiny for ICOs worldwide, as financial regulators rush to identify the right regulatory response amid a surge in activity.

ICOs have enjoyed exponential growth in 2017, raising as much as £2.3 billion from the sale of tokens and Simple Agreements for Future Tokens (SAFTs).

Regulators across the world have urged caution, with some going further—most notably in China, where an outright ban on ICOs marked the most decisive global response thus far.

While there are no suggestions the FCA could move to ban ICOs in the UK, their findings may point to the need for further regulation to tighten up the rules for initial coin offerings.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

And so it begins: UK wants Bitcoin under money laundering rules

Here comes the “regulators.”

Several UK-based media outlets reported on Monday that the British government is looking at increasing the regulation of cryptocurrencies like Bitcoin to fight against criminals who use the digital currency for illegal activities like money laundering.

The man behind the plan was Stephen Barclay, economic secretary to Britain’s Treasury. In October, Barclay told the parliament in a notice that “the UK government is currently negotiating amendments to the 4th Anti-Money Laundering Directive that will bring virtual currency exchange platforms and custodian wallet providers into Anti-Money Laundering and Counter-Terrorist Financing regulation, which will result in these firms’ activities being overseen by national competent authorities for these areas.”

The negotiations are expected to conclude at the European Union (EU) level “in late 2017/early 2018,” according to the economic secretary.

Under the plan, companies dealing with cryptocurrencies will be required to carry out due diligence on their customers as well as report any suspicious transactions to authorities. The goal, according to the British government, is to curb money laundering activities that use cryptocurrencies.

“We have clear tax rules for people who use cryptocurrencies, and like all tax rules, these are kept under review. We also intend to update regulation to bring virtual currency exchange platforms into anti-money laundering and counter-terrorist financing regulation,” a Treasury spokesperson said, according to reports.

As we all know, cryptocurrency’s underlying technology removes the need for a central exchange, which, in turn, puts a lot of governments that make their income by taxing the movement of money in a bind. Tech pioneer John McAfee explained it best when he said that “there’s no way you can create a law or to legislate something that will stop Bitcoin or any cryptocurrency because technically, you cannot.”

However, the cryptocurrency space still needs to have a regulated environment—preferably a self-regulated one—to prevent suspicious activities from taking place. In this context, the UK government’s move is expected—welcome even, as it will help the entire sector gain even wider mainstream acceptance. It’s also worth noting that these governments are basically regulating fiat to crypto exchanges, which means that these so-called regulators still have no ability to interfere with peer-to-peer transfers.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

And so it begins: UK wants Bitcoin under money laundering rules

Here comes the “regulators.”

Several UK-based media outlets reported on Monday that the British government is looking at increasing the regulation of cryptocurrencies like Bitcoin to fight against criminals who use the digital currency for illegal activities like money laundering.

The man behind the plan was Stephen Barclay, economic secretary to Britain’s Treasury. In October, Barclay told the parliament in a notice that “the UK government is currently negotiating amendments to the 4th Anti-Money Laundering Directive that will bring virtual currency exchange platforms and custodian wallet providers into Anti-Money Laundering and Counter-Terrorist Financing regulation, which will result in these firms’ activities being overseen by national competent authorities for these areas.”

The negotiations are expected to conclude at the European Union (EU) level “in late 2017/early 2018,” according to the economic secretary.

Under the plan, companies dealing with cryptocurrencies will be required to carry out due diligence on their customers as well as report any suspicious transactions to authorities. The goal, according to the British government, is to curb money laundering activities that use cryptocurrencies.

“We have clear tax rules for people who use cryptocurrencies, and like all tax rules, these are kept under review. We also intend to update regulation to bring virtual currency exchange platforms into anti-money laundering and counter-terrorist financing regulation,” a Treasury spokesperson said, according to reports.

As we all know, cryptocurrency’s underlying technology removes the need for a central exchange, which, in turn, puts a lot of governments that make their income by taxing the movement of money in a bind. Tech pioneer John McAfee explained it best when he said that “there’s no way you can create a law or to legislate something that will stop Bitcoin or any cryptocurrency because technically, you cannot.”

However, the cryptocurrency space still needs to have a regulated environment—preferably a self-regulated one—to prevent suspicious activities from taking place. In this context, the UK government’s move is expected—welcome even, as it will help the entire sector gain even wider mainstream acceptance. It’s also worth noting that these governments are basically regulating fiat to crypto exchanges, which means that these so-called regulators still have no ability to interfere with peer-to-peer transfers.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.