Assets, Bitcoin

Is Bitcoin Legal in UK?

Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

[17] As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.[18].

NOTE: WARNING: The legal status of Bitcoin in the UK is still somewhat unclear. It is not a recognised currency and it is not regulated by the Financial Conduct Authority. Furthermore, there have been reports of fraudulent activities involving Bitcoin in the UK and some banks may not accept deposits made in Bitcoin. As such, we strongly recommend that you conduct thorough research and obtain professional advice before engaging in any activities involving Bitcoin.

Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.

8 million unique users using a cryptocurrency wallet, most of them using bitcoin.[19].

The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them. While some countries have explicitly allowed their use and trade,[20] others have banned or restricted it.

Likewise, various government agencies, departments, and courts have classified bitcoins differently. China Central Bank banned the handling of bitcoins by financial institutions in China in early 2014.

Previous ArticleNext Article