Bitcoin (BTC) is struggling to extend its uptrend. It soared above 22% and hit the critical resistance level in early trade yesterday – BTC price trades below 9K today. Bitcoin price declined slightly in today’s trade with stiff resistance from bears – who believe regulators will kill illicit activities, which accounts for the significant portion of the trading volume.
Following U.S. regulators, the U.K. has set up a task force to look at the pros and cons of cryptocurrency markets. The task force consists of watchdogs from Britain’s Central Bank, the Financial Conduct Authority and, the Bank of England.
England has been acknowledging the latest developments in fintech industry, and the task force who will look at cryptocurrencies is the part of a strategy laid out by Westminster.
“As part of that, a new task force will help the U.K. to manage the risks around crypto assets, as well as harnessing the potential benefits of the underlying technology,” U.K. Finance Minister Philip Hammond said in a statement.
Previously, the Bank of England governor Mark Carney had suggested higher regulation on cryptocurrencies and claimed that digital currencies failed to work as a currency – the governor blamed price volatility and underlying value for his concerns.
Increasing Regulations Could Wipe off Illicit Trading Volume
Criminals have adopted cryptocurrencies substantially, due to the anonymous features and the potential to move money from one part of the world to other without the interference of banks. Reports suggest that half of bitcoin trading volumes originate from people who are involved in illegal activities.
Along with important aspects to settle on the whether cryptocurrencies are assets or currency, the U.K. task force will also suggest the ways to deal with the involvement of criminals in cryptocurrency markets –which could have a negative short-term impact on bitcoin and other tokens. The crypto market didn’t applaud U.K. strategy to set up a task force to inspect cryptocurrency markets.
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