The UK Government calls for information on cryptocurrencies

The UK Government calls for information on cryptocurrencies

LEOcoin recently contributed its thoughts to the Government’s ‘Call for Information’ on the proposed regulation of digital currencies, which closed on December 3rd 2014. The consultation received nearly a hundred responses which shows just how interested people are in the subject. Currently there are few regulations imposed on cryptocurrencies, other than standard money laundering regulations.

LEOcoin supports the development of steps that can be taken to create more confidence within the mainstream population. But overzealous intervention could dissolve the core benefits of cryptocurrencies, namely privacy, security, low to no fees and free marketability. In an extreme case, it could restrict legitimate business and create another black market.

The entire cryptocurrency ecosystem, both legal and otherwise, is evolving so quickly that legislators are now preparing to make rules for circumstances that have no precedent. Cryptocurrencies require a whole new way of thinking, and a much more flexible approach from governments. It is important to allow precedent to develop legally within the free market framework – rather than detour the course of cryptocurrencies in their infancy.

As we prepare for the public launch of LEOcoin in a couple of months’ time, we hope the UK will adopt a supportive and entrepreneurial mind-set or risk being left behind by other more progressive countries.