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Governments all over the world are very concerned about Bitcoin for various reasons. Not only does it pose a major risk to nationsâ economic stability, but itâs also a new form of money that canât be controlled. The UK Treasury is growing concerned as well, which is why it has tasked spy agency GCHQ to review the potential risks associated with Bitcoin.
Spy Agency Investigates Bitcoin
It is somewhat surprising to see how the UK government aims to tackle the Bitcoin dilemma moving forward. It seems the UK Treasury is very concerned over what Bitcoin is and how it will affect the countryâs economy. It is pretty difficult to gauge the full impact of this new form of money, as there is still a lot of research and development to be done in this regard.Â
More specifically, the UK Treasury has tapped the Government Communications Headquarters (GCHQ) to review the potential risks associated with Bitcoin. Most people will not have heard of GCHQ, although that isnât entirely surprising. It is one of the UKâs top spy agencies, which hardly makes any headlines these days. Probing the Bitcoin risks will be quite challenging even for this agency, though, and it all depends on how biased it is toward this new form of money.
To address the Bitcoin problem, the GCHQ will employ signals intelligence to the best of its ability. Considering that Bitcoin has become a big deal in the UK this year, it is only normal that we will see more efforts focusing on the risks Bitcoin may bring to the table. Gaining a better understanding of how the worldâs leading cryptocurrency works will be one of the big challenges to tackle head-on.
As one would expect, the spy agency canât successfully tackle this problem alone. It will need the help of experts across multiple industries, including mathematicians, blockchain specialists, and even academics. Rest assured there will be a large focus on what the spy agency discovers and how it will present its findings to the UK Treasury in the future. It is evident Bitcoin has a lot of hype across the UK right now, and the approach of learning more instead of banning it outright is commendable.
At the same time, this doesnât mean we wonât see additional Bitcoin regulations in the United Kingdom. The UK Treasury unveiled plans to introduce more guidelines not too long ago, and it is evident most of these guidelines will be modified based on the findings of the spy agency. Whether or not the resulting regulations will be positive remains to be determined. Most countries around the world lean toward cracking down on Bitcoin activity, and the UK may not be all that different.
All things considered, the United Kingdom can be a major player in the Bitcoin ecosystem moving forward. For some reason, Europe is still far behind when it comes to Bitcoin and other cryptocurrencies. Whether or not that situation will change in the future may depend on what the UK Treasury decides to do in terms of regulation. The recent price increase has certainly shaken things up quite a bit, and all governments need to play catch up in this regard.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.