UK & Taiwanese Regulators Weigh-in on Bitcoin Laundering, France ponders ICOs

This past week has witnessed several developments in the sphere of cryptocurrency regulations. In recent days, the U.K. government has assessed bitcoin as possessing a “relatively low” money laundering risk, Taiwan’s central bank has stated that bitcoin trading should be incorporated under the purview of existing money laundering laws, and France’s financial regulator has requested public consultation with stakeholders regarding the development of legislation governing initial coin offerings (ICOs).

The U.K. Has Assessed Bitcoin as Posing A “Low” Threat to Anti-Money Laundering and Anti-Terrorist Financing Regulations

Regulations Round-Up: UK & Taiwanese Regulators Weigh-in on Bitcoin and Money Laundering, France to Seek Public Consultation on ICOsAccording to a recent HM Treasury report, the U.K. government has determined that cryptocurrencies pose a “low risk” for terrorist financing. The report states that the U.K. National Crime Agency (NCA) has determined that the use of cryptocurrencies for money laundering is “relatively low”, despite stating that virtual currencies are used a means to “launder low amounts at high volume.”

The U.K. government’s assessments echo the conclusions of a report issued two years prior by the country’s Treasury department. Looking ahead, the recent reports predicts growing cryptocurrency adoption may lead to a rise in its use as a vehicle for money laundering, stating “as the number of businesses accepting digital currency payments grows, there is an increasing risk of criminals using the currencies to launder funds without needing to cash out into non-digital, or ‘fiat’ currencies.” The paper suggests that the prevalence of bitcoin being used for terrorist financing is “unlikely to increase in the next five years.