UK Lawmakers: ‘Wild West' Cryptocurrencies Need Regulation

British lawmakers have backed calls for greater regulation of cryptocurrencies such as bitcoin in order to bring an element of control to a market that more resembles the Wild West.

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In a report on digital currencies published this week, the Treasury Select Committee called for regulations to protect consumers and prevent money laundering.

Lawmakers highlighted a rapidly emerging industry that’s been troubled by wild price swings, allegations of fraud and worries it could be used to finance criminal or terrorist activity.

Virtual currencies, also known as tokens, are electronic alternatives to traditional money.

The appeal of cryptocurrencies like bitcoin lies in their use of “blockchain technology” that records all transactions in a digital database while keeping identities private, allowing users to sidestep government or banking system oversight. Speculation has also played a part in their popularity: bitcoin’s price skyrocketed late last year to more than $19,000 though it has since tumbled and is now trading at around $6,300.