Will UK Ban Bitcoin?
More recently, we talked about the fact that the UK intends to reconsider its attitude towards cryptocurrencies and equate digital transactions with classic money transfers. And then we talked about how this is the first step towards full recognition of digital assets not only in Britain, but also in the world. However, the crypto industry is not standing still. The latter is extremely interested in the political scene, and therefore today in the UK the question of a complete ban on all transactions using Bitcoin was raised for consideration. Next, we will consider this government initiative. We will identify the likelihood of its adoption, as well as discuss related points. So let’s get started.
Who is behind the proposal?
We note right away that the decision is still far from being made. But the question is already being raised. A financial advisor and founder of West Riding Personal Financial Solutions is behind such an initiative. The specialist’s name is Neil Liversidge and he has a fairly serious weight in the British financial system. In his address to the government and parliament of the state, the expert expressed concern about the role of cryptocurrencies in modern Britain. According to Liversidge, cryptocurrencies have no state significance.
In addition, the specialist believes that digital coins are dangerous for the ideological and political integrity of Britain. It was also noted that digital assets are often used for financial fraud. Actually, the main focus is on the fear of an increase in crime. The specialist believes that a complete ban on Bitcoin will deprive fraudsters of one of the main tools for money transfers and help Britain more effectively fight scammers.
Also in the message to the government, the fact of damage to the environment appears. The point is mining, which consumes a lot of electricity, the production of which, it is known, requires natural resources and neglect of the environment. However, this is just an initiative that is far from approved. According to UK law, parliament requires 10,000 signatures for each petition to begin consideration. After collecting the specified number of signatures, the state structure is obliged to provide a response to the appeal of the interested citizen. How likely is Liversidge’s proposal to be approved? Will Bitcoin Really Be Banned in Britain? More on this in the next section.
How will the UK react to the petition?
There is no doubt that the appeal will collect the specified number of votes. We have no doubt that there are enough opponents of Bitcoin and Blockchain in general in the country. Skeptics will definitely sign the document, and there are clearly more than 10 thousand of them in the whole country. However, a complete ban on Bitcoin is unlikely. In our subjective opinion, the use of cryptocurrencies brings more benefits than harm. This simple truth is certainly understood at the state level. We do not exclude the fact that the parliament will respond to the appeal, but the answer is almost guaranteed to be negative.
In fact, the petition contains many illogical points. For example, the statement that Bitcoin is used for illegal activities is only partially correct. Scammers are increasingly using more confidential cryptocurrencies. And Liversidge, as we understand it, requires the prohibition of the first digital asset. The same goes for mining. It does harm only when using demanding algorithms like Proof-of-Work. More modern principles do not require users to use powerful hardware. This means that the harm to the environment is reduced to zero.
Surely, such subtleties will be taken into account in the government, and then Liversidge’s proposal will be rejected. So don’t panic. The main thing is to follow the news of the cryptoindustry with us. We publish only high-quality and interesting material. Thanks for attention. Good luck!