Regulation News

UK worries about untraceable crypto payments

TL;DR Breakdown

• Crypto experts warn British investors about the cryptocurrencies volatility.
• Regulators and the UK government are warning about crypto payments risk due to tracking difficulty.

A specialist in debt and bankruptcy has claimed that the UK could suffer unlimited losses due to companies accepting crypto payments. He indicates these payments are tax-exempt and untraceable, all of which can cause investors to lose their money.

Companies that accept crypto as payment methods are on the rise and growing every day. Lush, a cosmetics company, along with shared office company WeWork already use cryptocurrency payments.

Both Lush and WeWork accept payments in digital currencies such as Bitcoin for goods and services, cash, debit cards, and credit cards.

Crypto payments could be dangerous, according to UK authorities

Investors and crypto enthusiasts have welcomed this new payment method. Experts say that companies can use this payment to hide cash from regulators and authorities. Above all, they can hide money when businesses fail.

The Begbies Traynor director, Julie Palmer, commented that the increase in crypto payments would not allow managers to keep track of funds. After a failure, the people in charge of the company liquidation cannot track whether the directors or owners are illegally diverting funds from the company.

This is a problem for the country’s authorities because criminals or scammers can run away with the funds. Palmer has also said that UK authorities can be drawn into significant losses without new fiscal policies and new regulations. She warned that cryptocurrencies have unlimited potential; these losses will also depend on how recognized the crypto payment becomes.

This is another threat born from the rise and popularity of digital currencies; the crypto world has been linked to the black market, terrorism, and money laundering.

Scammers can use cryptocurrency payments

Scammers and criminals can hide their wealth from local regulators and tax collectors. Every day, cryptocurrencies are increasingly adopted among startups, scammers, and merchants, accepting crypto assets as a payment method by creating virtual wallets.

Palmer has indicated that local regulators can see where money is coming from and where it heads to with the trusts. But with virtual currencies, they cannot because they are unable to track and cannot see if the funds have been withdrawn.

Palmer has indicated that the country is behind on this issue compared to the United States. She also said that the country must act and establish new laws and regulations that ensure that crypto payments are adequate and secure.

This post was last modified on July 25, 2021 7:57 pm

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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