[2015-05-26] CoinDesk: Accenture: UK Government Should Regulate Bitcoin Wallets

[bitbouillion]

These institutions would be authorised and regulated by a central authority, such as the FCA and they would be required to:

    Issue digital currency wallets and identify the digital currency wallet owner through KYC checks
    Maintain a compliance status of each digital currency wallet
    Monitor digital currency wallet usage to check payments are between other identifiable digital currency wallets
    Monitor transactions for adherence to sanctions lists
    Be able to freeze digital currency wallets where they are being used for suspicious activity.

http://www.coindesk.com/accenture-uk-government-should-regulate-bitcoin-wallets/

How stupid is this?

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[Neg]

Be able to freeze digital currency wallets where they are being used for suspicious activity.

Lol. Who the fuck would agree to use that? The trouble is, it's these sorts of regulations that will kill or severely strangle bitcoin but they genuinely might try to pass something like this as they're going to be worried about people laundering money or holding coins that can't be taxed or seized.

[pedrog]

Be able to freeze digital currency wallets where they are being used for suspicious activity.

Lol. Who the fuck would agree to use that? The trouble is, it's these sorts of regulations that will kill or severely strangle bitcoin but they genuinely might try to pass something like this as they're going to be worried about people laundering money or holding coins that can't be taxed or seized.

A shitload of people already agree with that, also doesn't seem to be killing bitcoin, Coinbase does all of that, probably Circle and Xapo too.

[Neg]

Be able to freeze digital currency wallets where they are being used for suspicious activity.

Lol. Who the fuck would agree to use that? The trouble is, it's these sorts of regulations that will kill or severely strangle bitcoin but they genuinely might try to pass something like this as they're going to be worried about people laundering money or holding coins that can't be taxed or seized.

A shitload of people already agree with that, also doesn't seem to be killing bitcoin, Coinbase does all of that, probably Circle and Xapo too.

There's a big difference between users voluntarily using a third party that doesn't allow them to keep whole access to their coins. You're fine as long as you use your own wallet and that's one of the biggest selling points of bitcoin is that it allows you to be your own bank so these suggestions if implemented or forced would kill it for me.

[melody82]

Its completely absurd.  I imagine its not that difficult to code a new wallet.  So legit, non criminal users will just shrug an use controlled wallets.  Crooks laundering money will hire some coders to just come up with another wallet.  I don't think there is any way to stop it.

It reminds me of the idiocy of gun control.  For example clip size (in california) is limited to 10 bullets.  But most crimes are committed with just one or two bullets.  Plus it is really easy to get bigger clips online or at gun shows.  So the effect is that its a pain in the ass for hobbyists but the criminals who want larger clips can very easily get them.  I suppose the only people that benefit are those who sell big clips under the table.

With this idea you are only inconveniencing legitimate users, and the illicit users will not have any trouble getting around the regulation.  You can already see this in the usa: it is slightly more inconvenient for us to sign up for an account at a u.s. based service, but illicit users can just skip services like coinbase and make transactions direct from wallet to wallet.  Governments will try things like this but they wont accomplish anything.

[bitbouillion]

There is no need to code a wallet. It's open source and freely available. A wallet is just some math you can run even on a spreadsheet.

[goxed]

UK Govt. should regulate Accenture instead.

http://content.time.com/time/specials/packages/article/0,28804,1914815_1914808_1914804,00.html

http://phys.org/news/2011-09-accenture-fraud-million.html

http://en.wikipedia.org/wiki/Enron_scandal

Apparently it looks like after Cameron's re-election, regulation of Internet and related applications has become fashionable in UK

[RodeoX]

How stupid is this?

Super duper stupid! Fortunately the idiot who said this stuff has no idea about how BTC works.

UK Govt. should regulate Accenture instead.

Ooo, good find.

[crazyearner]

Trying to regulate wallets good luck with that will never happen. And even if it did happen people would just use an alternative client or use another crpto if it ever got to a state of regulating wallets. Would be a stupid move if it did ever pass.

[jeannemadrigal2]

There is no need to code a wallet. It's open source and freely available. A wallet is just some math you can run even on a spreadsheet.

Thanks.  TBH I am not a coder at all and I have little idea how some things work behind the curtain.  I always appreciate it when someone takes the time to explain things.

[odolvlobo]

These institutions would be authorised and regulated by a central authority, such as the FCA and they would be required to:

    Issue leather currency wallets and identify the leather currency wallet owner through KYC checks
    Maintain a compliance status of each leather currency wallet
    Monitor leather currency wallet usage to check payments are between other identifiable leather currency wallets
    Monitor transactions for adherence to sanctions lists
    Be able to freeze digital currency wallets where they are being used for suspicious activity.

http://www.coindesk.com/accenture-uk-government-should-regulate-bitcoin-wallets/

How stupid is this?

I propose these regulations:

• Issue leather wallets and identify the leather wallet owner through KYC checks
• Maintain a compliance status of each leather wallet
• Monitor leather wallet usage to check payments are between other identifiable leather wallets
• Monitor transactions for adherence to sanctions lists
• Be able to freeze leather wallets where they are being used for suspicious activity.

They are just as ridiculous.

[Lethn]

By the time they notice anything weird everyoe will have just withdrawn their money into Bitcoin and so they won't even be able to freeze the bank accounts, should be pretty funny, I've been wondering what they'd try to attack Bitcoin with, I guess this is the first step. Yes, a lot of exhanges do this and can take control of your wallet at will ( never forget that guys when you're dealing with an exchange ) but the point of this article is that the UK government is taking an active role in trying to dictate to exchanges how they do this. Certainly it is a setback for us, but in the end we'll just move elsewhere because they can't control Bitcoin-QT and how the blockchain operates.

So much for the UK being Bitcoin friendly am I right?

[bitbouillion]

Exactly, UK government needed a 51% control over the network in order to efficiently control wallets.

[LiteCoinGuy]

Be able to freeze digital currency wallets where they are being used for suspicious activity.

Lol. Who the fuck would agree to use that? The trouble is, it's these sorts of regulations that will kill or severely strangle bitcoin but they genuinely might try to pass something like this as they're going to be worried about people laundering money or holding coins that can't be taxed or seized.

A shitload of people already agree with that, also doesn't seem to be killing bitcoin, Coinbase does all of that, probably Circle and Xapo too.

and 50 other wallets dont do that. you will never be able to regulate the world.

[1Referee]

It only shows their lack of knowledge regarding Bitcoin/digital currencies. The only thing the whole article is good for, is that it gives you a good laugh.

[chmod755]

Nothing special here. They are only talking about wallet services like Coinbase and Circle.

These institutions would be authorised and regulated by a central authority, such as the FCA and they would be required to:

[Lethn]

Exactly, UK government needed a 51% control over the network in order to efficiently control wallets.

We had our chance to try and test whether that theory would work when CEX.IO announced how much hashpower they had, I doubt it will come along again because of how popular cryptocurrencies are getting. It's annoying because if we had a proper test of the network and tried to take it down then we could finally put that stupid argument to rest.

[pitham1]

Nothing special here. They are only talking about wallet services like Coinbase and Circle.

These institutions would be authorised and regulated by a central authority, such as the FCA and they would be required to:

Exactly. For people who trust themselves more than such institutions, hold your bitcoins in your personal wallet.
I don't think the government intends to (or is trying to) freeze those.