Gov’t Regulations Ease Up on Bitcoin Businesses
The influx of startups and established firms operating on digital currencies increases over time, putting pressure on certain governments to lay out new regulations and even legislations to promote a balanced, dynamic, and secure environment.
Although not all governments are proactive in creating Bitcoin-friendly policies, there are those that are open to the inevitability or the possibility that Bitcoin—or any other cryptocurrency for that matter—will become a dominant payment system in the world one day, if not a full-fledged currency.
This holds true for entrepreneurs in the UK, where a new regulation will be in favor of Bitcoin exchanges and related businesses.
UK becomes friendlier to Bitcoin ventures
Bitcoin businesses based in the UK will be granted ‘fair and open access’ to payment systems through the legislation penned by the Payment Systems Regulator (PSR).
One of the main challenges for Bitcoin exchanges and providers of related services was the unfavorable treatment of banking institutions toward such businesses, even resulting in the closure of accounts.
Unfortunately, the new regulation seemed to have heightened the rift between banks and the Bitcoin markets. The British Bankers Association published a report in response to the PSR’s move, stating that this will be detrimental to the growth of banking institutions in the long run.
The European countries now await the next step to be taken in regard to the VAT regulations for Bitcoin.
Raising capital no longer a problem in the US
Meanwhile, in two months, small businesses may already start raising and gaining access to capital with the passing of the legislation developed by the Securities and Exchange Commission.
With this soon-to-be-law, there will be less stringent policies for raising capital in an effort to support new and small startups to raise funds of up to $20 million in a span of 12 months.
Isle of Man’s Bitcoin regulation in full swing
After the amendment of the Proceeds of Crime Act 2008, the Designated Businesses (Registration and Oversight) Bill 2014 will soon become a law.
The bill was only recently passed in the Legislative Council and is just waiting for the Royal Assent. Officials are eyeing the process to be finalized in summer, after which the Financial Services Commission will supervise the procedures and anti-money laundering concerns.
However, while this rings progress for Bitcoin businesses, it comes with extra costs. Merchants and operators will be subject to higher fees and additional procedures for them to abide by the rules.
Included in the requirements is the registration of the companies with the FSC within the first six months after the law was enacted.
Do these regulations affect the Bitcoin casino market?
Although the new regulations are predominantly focused on Bitcoin exchanges and related services, Bitcoin casino and gambling sites may benefit from the long-term development. It is still uncertain whether or not the Isle of Man government will expand its relationship with Bitcoin to cover digital currency gambling too. The same goes for UK, even more so for the US.
Nevertheless, online bettors can still bet on the Bitcoin casino games, regardless of these new policies, but gambling operators may want to closely follow these developments as these regulations may also affect or apply on this market.