Written question asked by Lord Harris of Haringey (Labour) on Tuesday, 14 November 2017, in the House of Lords. It was due for an answer on Tuesday, 28 November 2017. It was answered by Lord Bates (Conservative) on Tuesday, 28 November 2017 on behalf of the Treasury.

Cryptocurrencies

Question: To ask Her Majesty's Government whether they intend to bring forward proposals to bring digital currency exchanges under money laundering regulations.

Answer: The Government is currently negotiating amendments to the 4th Money Laundering Directive that we expect to bring virtual currency exchange platforms and custodian wallet providers into the scope of Money Laundering and Counter-Terrorist Financing regulation. This will require such firms to conduct due diligence upon their customers, with their activities being overseen by national competent authorities for these areas. The government supports the intention behind these amendments. We expect these negotiations to conclude at EU level in late 2017/early 2018.

Secondary information