Concerned it is being used to launder money and dodge taxes
The London Telegraph is reporting that ministers are looking to regulate bitcoin. They cite concerns that the crypto currency is being used to launder money and dodge taxes.
Buyers of bitcoin are able to buy bitcoin anonymously. The treasury wants to regulate bitcoin and force traders to disclose their identity and report suspicious activity. The regulation would be in line with anti-money laundering and counterterrorism financial legislation.
The expectations are that the rules would be applied across the European Union and are expected to come into force by the end of the year or early 2018
Bitcoin is trading at $11,055 up after trading as high as $11,845.33 over the weekend (that took out the high from last week). The price cracked $10,000 and moved to a high of $11,434 on Wednesday but then tumbled to a low of $9,019 also on Wednesday. On Thursday, the price bottomed at $9022 - just a few dollars short prior low.That double bottom will be key going forward for traders.
Looking at the 5-minute chart below, the 100 and 200 bar MAs on the 5-minute chart come in at $11,104 and $10,727 respectively. The price cracked below both earlier but are now trading back above (the price currently trades at $11,200). Move below, and stay below would be more bearish.
