[2014-08-06] Britain eyes Bitcoin, rivals, with virtual currency rules

[erono]

http://www.scmp.com/business/banking-finance/article/1567534/britain-eyes-bitcoin-rivals-virtual-currency-rules

The announcement came in a package of measures unveiled by finance minister George Osborne aimed at boosting financial innovation in London to help fend off challengers to the city’s status as the world’s leading financial centre.

Unlike conventional money, virtual currencies are not backed by a central bank or government, but have become increasingly used as a means of online exchange with some bricks-and-mortar vendors also accepting them as payment for goods and services.

“The government will look at the potential virtual and digital currencies have for achieving positive change and for encouraging innovation in our world leading financial sector, as well as the potential risks,” said a finance ministry statement.

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[Kprawn]

So are they worried that it's not governed and controlled by a central organization, because this is the reason why people adopted it in the first place. 

They feel safe, when they can control it, and there in the problem, BTC do not want to be controlled, it's protocol was designed to eliminate manipulation by central entities.

Once it's centralized and controlled, people will not use it, and they will invent the next technology, not controlled by central entities.

[Bank Of Bitcoin]

So are they worried that it's not governed and controlled by a central organization, because this is the reason why people adopted it in the first place. 

They feel safe, when they can control it, and there in the problem, BTC do not want to be controlled, it's protocol was designed to eliminate manipulation by central entities.

Once it's centralized and controlled, people will not use it, and they will invent the next technology, not controlled by central entities.

yes no one controll about thats . just adopted one person to another price . if this stilll grow .
it will going really big and useless feature again .

[gmx95]

I don't understand why they need to make new rules? They have the "e-money" rules, related to electronic payments and staff. Bitcoin should just fit into that category I think.

[howardb]

I don't understand why they need to make new rules? They have the "e-money" rules, related to electronic payments and staff. Bitcoin should just fit into that category I think.

They have not announced new rules, simply a  review of the technologies and potential impact. Thats not saying it won't lead to new rules, and those rules might not necassarily be bad for bitcoin. I doubt they will go as far or be as restrictive as New York, but legitimising bitcoin with the banks would go a long way to freeing up innovation, since main problem at moment is no UK banks will knowingly hold business accounts for bitcoin linked companies.