The UKDCA has responded to The European Banking Association (EBA) proposal for a potential regulatory regime for “virtual currencies”, published on 4th July 2014.

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The UKDCA has issued the following statement in response to the EBA’s proposal.

Statement from The UKDCA in response to the EBA’s proposal for a regulatory regime for virtual currencies

The UKDCA notes the statement issued by the EBA on “virtual” currencies today. The UKDCA is not aware of any banks in the UK that hold, accept or transact with bitcoin, other digital currencies nor offer banking facilities to digital currency businesses and service providers. Accordingly we are unsurprised by this edict from the EBA. Digital currencies are a global trend and their purpose is to offer both a monetary alternative and competition for centralised legacy payment networks.

The UKDCA recognises that this innovative technology poses questions of existing regulatory structures but would welcome the opportunity to engage with the EBA and help establish a framework that ensures risks for all participants are mitigated. Use cases for digital currency technologies extend way beyond that of alternative currency units alone and The UKDCA believes that stifling their development will be detrimental to the greater public good.