The biggest concern for the UK government at the moment is that cryptocurrencies, like Bitcoin, are being used to buy illegal goods and services, and there is no way of knowing who purchased the goods. This means that it is very difficult for the government to track such transactions, and that the government would have no way to regulate the market.
If you’re a UK crypto enthusiast, then you’ve probably been following the news about the Bank of England’s recent warnings about the use of cryptocurrency. And if you’re like most people, you’re probably thinking “WTF? What’s all the fuss about?” Suffice to say, the Bank of England’s predictions about the risks of virtual currencies are quite correct, and its concerns are especially relevant for the UK payment sector, which is already one of the largest digital markets.
Bitcoin, the digital gold, has been a hot topic of late. The currency, which is backed by the same technology that gives computers the ability to check money transfers, has been adopted by the likes of WordPress and Overstock.com as a way to facilitate and track fast and efficient global payments.
But, with the way Bitcoin works, it means that your transactions—like your credit card transactions—are untraceable. The Treasury Committee has published a report, entitled “untraceable” highlighting the many concerns that the government has about the currency.
• Crypto specialists caution British investors about the volatility of cryptocurrencies, while regulators and the UK government warn against the danger of crypto payments owing to the difficulties of monitoring them.
According to a debt and bankruptcy expert, businesses accepting cryptocurrency payments may cause the UK to incur untold losses. He claims that these payments are tax-free and untraceable, all of which may result in investors losing money.
Companies that take cryptocurrency as a form of payment are on the rise and becoming bigger every day. Lush, a cosmetics business, and WeWork, a shared office provider, both accept bitcoin payments.
Both Lush and WeWork allow payments for products and services in digital currencies like Bitcoin, as well as cash, debit cards, and credit cards.
According to UK officials, cryptocurrency payments may be hazardous.
This new payment mechanism has been warmly received by investors and crypto fans. According to experts, businesses may utilize this payment to conceal funds from regulators and authorities. Above all, they have the ability to conceal funds when companies collapse.
Julie Palmer, a director at Begbies Traynor, said that the rise in crypto payments will make it difficult for managers to keep track of money. Following a collapse, those in charge of the company’s liquidation are unable to determine if the company’s directors or owners are unlawfully transferring money.
This is an issue for the police since criminals or fraudsters may take the money and flee the country. Palmer also said that without new fiscal policies and restrictions, the UK government may be dragged into substantial losses. She cautioned that cryptocurrencies have limitless potential; nevertheless, the amount of money lost will be determined by how widely accepted cryptocurrency payments become.
Another danger has arisen as a result of the increase in popularity of digital currencies; the crypto world has been connected to black market activity, terrorism, and money laundering.
Scammers may take advantage of cryptocurrency payments.
Scammers and crooks may conceal their riches from local tax collectors and authorities. Cryptocurrencies are being rapidly embraced by entrepreneurs, fraudsters, and merchants, who are building virtual wallets to accept crypto assets as a payment option.
Local authorities, according to Palmer, can see where money comes from and where it goes with the trusts. They can’t do so with virtual currency since they can’t monitor and check whether the money have been taken.
Palmer has said that the nation is lagging behind the United States on this problem. She also said that the government must take action and enact new legislation to guarantee that crypto payments are sufficient and safe.
The UK is a major global hub for cryptocurrency and blockchain companies, with the government even creating a dedicated regulator for the industry, called the Cryptoassets Taskforce. And now, the government is worried about the increasing use of crypto payments without being traceable and probably linking it to tax evasion and money laundering.. Read more about is hyperfund legit and let us know what you think.
This article broadly covered the following related topics:
- bitcoin scammer list 2021
- crypto tax evasion uk
- cryptocurrency tax evasion
- crypto com hmrc
- how is bitcoin untraceable