By Mark Evans, UK-based technology correspondent at CoinDeskThe crypto-currencies, which use digital currencies to pay for goods and services, are gaining in popularity as a result of their anonymity, security and flexibility.
However, some have raised questions about the use of such currencies to conduct illicit activities.
The most recent example of this comes from the United Kingdom, where the country’s government announced it would be banning crypto-coin trading in September.
Crypto-curves have been around since 2009, and the UK’s decision came after several UK lawmakers had asked the government to look at the use cases for the crypto-assets, which include bitcoin, ether and litecoin.
While the government has been keen to take a cautious approach to crypto-tokens, its actions have led to concerns from both government officials and those in the tech industry, including Apple and Microsoft.
While some critics have raised concerns about the safety of crypto-trading, the UK government has so far failed to respond.
A spokesman for the Department for Digital, Culture, Media and Sport told CoinDesk:”There is no need to ban crypto-wallets, as the technology will be widely adopted and there is no evidence that any criminal uses of crypto have been detected or prosecuted in the UK.”
The spokesman added that the government will continue to monitor and work with crypto-related issues.
However a spokesperson for the Financial Conduct Authority (FCA), which regulates the use and trading of digital currencies, told CoinMarketCap:”The FSA does not make policy on the use or trading of any cryptocurrency.
However, the FSA does have the authority to ban cryptocurrency trading in the public interest.”
The FSA, which is responsible for enforcing the UK Financial Services Act, is yet to comment on the ban.
Bitcoin, ether, lite and bitcoin have all been criticised for their alleged use of illegal and potentially criminal activity.
In a report published in November, the Financial Services Authority (FSA) said that there was a need to investigate the use case for digital currencies such as bitcoin, but it was not clear what specific use cases they would consider.
However it did note that digital currencies “offer many of the features of a fiat currency and offer a range of financial services, including remittance, payment processing, money transfer, and remittance settlement”.