Cryptocurrencies ter the UK – Legal Status and Expansion

It goes without telling that at this stage cryptocurrencies are going to be the way forward for finance the world overheen. The advantages are too big to disregard, the development communities are thick and hard at work, and major financial institutions and other significant organizations are investing ter a big way.

At the very least wij are going to see their integration at some stage ter the near future. Adoption is coming to UK markets ter vinnig and chunk, with more and more vendors accepting bitcoin and other related cryptocurrencies day by day. It is growing and will soon be mainstream, if it is not already mainstream. The only real question is what cryptocurrencies are going to take directive, and te which industries.

Litecoin and Bitcoin ATM’s ter UK

There has bot a latest surge ter request for cryptocurrencies. An example of such request and growth is the installation of Litecoin ATM’s across the UK.

Litecoin is the current global leader ter terms of of Litecoin supportive ATM’s, with 91 Litecoin ATM’s installed te June 2018 alone. Many Bitcoin ATM’s cater for Litecoin withdrawals and vice versa. The main owners of thesis ATM’s are Bitcoin of America, RockitCoin, Athena Bitcoin and Bitstop. Te May, Alphavend announced that it wasgoed going to install a Bitcoin ATM with Litecoin integration on Brighton.

Litecoin is a coin very similar to Bitcoin except that it is much quicker and lighter to use. Hence the name Litecoin, and it solves much of the technical drawbacks of Bitcoin. It could well be possible that people will store their money ter Bitcoin but use Litecoin for everyday purchases, the two being the most well-known cryptocurrencies and sharing many features. Bitcoin can be likened to the omschrijving of a “savings account” while Litecoin would be the “current account”.

The correlation of Litecoin to Bitcoin has historically bot around 0.8, meaning there is a fairly a large correlation. While this may seem like the two are intrinsically linked this may not be the case. If there is a Bitcoin coin crash, instead of Litecoin submerging with the ship, investors may actually flock to the perceived next best thing – Litecoin. That said they are so intertwined it is more likely that each will bring up the other, given the level of interoperability for the two currencies. While other currencies like Ethereum are said to be “against” Bitcoin, they may well be up against the Bitcoin/Litecoin twee.

The Regulatory Environment

But before the UK expands ter the cryptocurrency sector the regulatory infrastructure needs to be waterput ter place. Before vendors and investors embark trading and investing ter alternative currencies there is the very large question of taxation and associated legal requirements. Other countries such spil Japan are a little ahead of the curve te terms of the legal status and regulation of cryptocurrencies.

With the collapse of Tokyo based cryptocurrency exchange Climb on Gox and the subsequent loss of $450 Million, Japan has now instigated legislation and procedures to ensure that the disaster does not toebijten again. Japan is also actively engaged on a number of cryptocurrency projects with different vendors, and could serve spil the catalyst for regulation te the UK and the surplus of the world.

There is very little regulatory oversight of Bitcoin ter the UK, and it is presently treated spil private money. Bitcoin has a 72% share spil the most actively traded cryptocurrency, and Bitcoin users te the UK are on the rise. Te order to regulate a cryptocurrency such spil Bitcoin it is very first necessary to categorize it spil either a community or a currency or spil something other than those two. This will determine how the commodity/currency/unknown is going to be taxed and regulated.

Cryptocurrencies seem to lie halfway inbetween a currency and a commodity. It can be spent to purchase a onderdaan yet can also be traded on an exchange spil a finite commodity. Ter the US, Bitcoin has met with some resistance from the Securities and Exchange Commission. The SEC recently slok down two proposals to create an exchange traded Bitcoin podium.

The Way Forward

It is possible than wij will see cryptocurrencies ter the UK but not the ones wij are familiar with – Bitcoin, Litecoin, Ethereum and Ripple. Many large institutions are talking about commencing their own cryptocurrencies te line with regulatory policies which would be monitored more cautiously. The kwestie with Bitcoin and associated companies is that they view regulation spil being “anti” Bitcoin, spil Bitcoin is supposed to be totally decentralized without outside interference. From this perspective Bitcoin may need to grow up and accept regulation, otherwise it will be overtaken by currencies that are willing to be regulated. According to Bob Swarup, principal of Camdor Global Advisors:

“If Bitcoin wasgoed going to become any kleintje of valid currency with widespread appeal, then it indeed needed to grow up and growing up ter the currency world means accepting the influence of the state and regulation ter some way”

Spil history suggests, the minute a currency or a commodity is given legitimacy by an official source, then request will skyrocket. But the fact that it is not yet regulated means that many businesses are wary of accepting it or spending it.

That said, some companies are going ahead with cryptocurrencies while the UK regulatory authorities seem to be te limbo. UK based fintech company Revolut is a company which permits users to trade currency pairs with no transactions costs and supports numerous currencies. Revolut has a current userbase of 700,000 customers, 400,000 of whom are ter the UK, and is adding bitcoin to its list of acceptable currencies. According to Revolut customers will be able to leverage Revolut ter the same way that other currencies are presently used on the toneel, to pay for goods and services directly or to exchange bitcoins for other listed currencies.

Wait and See

Investment te and adoption of cryptocurrencies, te particular Bitcoin and Litecoin, are on a rapid climb te the UK. This trend is going to proceed and people are flocking to cryptocurrencies. The onus is on regulatory authorities to establish solid guidelines and procedures sooner rather than zometeen, spil it will be lighter for businesses and will bolster UK revenue. The current state of affairs seems to be to wait and see how Japan fares te its regulation of the cryptocurrency market, and take its cue from them. Ter terms of regulatory frameworks and acceptance of Bitcoin, the UK, the USA, and other nations seem to be far behind Japan and unwilling to punt clear and definitive guidelines so that businesses can budge forward.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on outward analysis and wij do not warranty that any such movements or levels are likely to reoccur te the future

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