Digital currency is a 21st phenomenon, requiring a modern approach. This so-called crypto currency is an entirely legitimate source of funds to pay for goods and services and increasingly popular in a technological age.
Blockchain technology is an evolving technology: a public digital ledger that records all transactions using crypto currency (currently, just Bitcoin). And the use of crypto currency is increasingly mainstream, with even forward-thinking law firms such as Selachii accepting payment by way of Bitcoin. Many other mainstream businesses are now accepting crypto currencies as payment for goods and services, ranging from Amazon to high street stores.
Bitcoin is the leading crypto currency (there is also Altcoin, Litecoin and others) and it’s thought there are around 21 million Bitcoins currently in circulation. But regardless of its increasing use, digital currency remains unregulated. It is largely untraceable, can be sent and received anonymously – and is therefore particularly susceptible to being used for criminal purposes.
There are calls for regulation of crypto currency, but until some sort of regulatory framework is introduced, there are clear regulatory and compliance risks, and potentially significant legal implications. The UK Government has made sounds of introducing regulation and we await with interest.
Furthermore, with recent terrorist attacks in Paris and elsewhere, the European Commission (EC) has recently warned of a crackdown on virtual currencies with the aim of cutting off financing to terrorists.
Here to stay
Digital currency is undoubtedly here to stay, with tangible benefits such as lower transaction costs, anonymity, ease of use. Nor is it subject to sales tax. But understanding the associated risks is critical - which is why discussing your use of Bitcoin or other crypto currency with specialist digital currency solicitors is recommended.
How Selachii Can Help
Selachii is a dynamic litigation law firm based in Kensington, London. Our specialist crypto currency and Bitcoin solicitors are highly experienced in the risks associated with Bitcoin. We work with both businesses and private individuals, giving them legal advice and support which is unique to them and their situation.
We don’t believe in simply handing out one-size-fits-all solutions to problems. We will focus on your specific circumstances before working out the best and most cost-effective way of helping you achieve your aims.