Australia Looks To Regulate Bitcoin Amidst Security Concerns
The advent of digital currencies like Bitcoin have been welcomed by many online gambling sites as it provides an alternative to those who do not have access to traditional banks. The processing fees are also much less than those charged by banking institutions which make it a win- win for both casino operator ad players in areas where banking is difficult.
However the fact that Bitcoin is basically not backed up by a physical substance like gold and relies on computer code has got many governments in a quandary as how to approach virtual digital currencies. This week sees Australia’s financial intelligence agency AUSTRAC hosting a finance summit dealing with counter terrorism.
One of the claims made by critics of Bitcoin is that it offers anonymity which is the ideal way for money laundering and terrorists to move money around. Justice minister Michael Keenan is set announce the intention of the Australian government to improve existing legislation on digital currencies in order to address these concerns. Keenan believes that there are emerging threats as to the abuse of currencies like Bitcoin and recommended a review of the Anti- Money Laundering and Counter – Terrorism Financing Act to amend all activities that relate to digital currencies.
Keenan said,” This provides another tool for criminals and terrorist financers to move and store illicit funds beyond the reach of law enforcement and other authorities and purchase illicit goods and services.”