Accenture recommends legal regulation of Bitcoin Wallets

In the future, Bitcoin Wallets will be subject to the same regulatory and identification requirements as bank accounts, in response to a request from the UK Treasury for information on digital currencies.

The document, released by CoinDesk’s request under the Freedom of Information Act and dated December 2014, details Accenture’s very positive attitude to crypto currencies such as Bitcoin.

Accenture announced the Bitcoin revolution

“Digital currencies are at an early stage of development such as usage, but they will remain and the underlying technology in particular has the potential to reinvent many aspects of finance. However, the document also contains risks of digital currencies, such as high price volatility, lack of customer protection or loss of capital due to forgetting one’s Bitcoin revolution key or fraud:

Proposals for regulation
According to Accenture, Bitcoin’s biggest problem today is its importance and use in money laundering. The company claims that the same identification requirements necessary to create a bank account should also be applied to Bitcoin Wallets.

“Just as governments prescribe identifiable bank accounts (either through name tied accounts or other credentials), a requirement for named, identifiable crypto currency wallets would be a core component of a secure, legitimate digital currency economy,” the document goes on to say.

This is followed by a proposal for a centralised body to “monitor and control digital currency wallets”.

Accenture, however, repeats several times in the document that these requirements should be limited to wallets and not applied to digital currencies in general.

Each regulation should be “responsible and proportional”, with clear rules and responsibilities for participants and users of digital currencies.

The submission further states about Bitcoin loophole

“Hard regulation (or application under historical conditions) could limit Bitcoin loophole innovation – to avoid this, a flexible regulatory regime should be put in place that is specifically geared to the digital currency market and evolves with its growth”.

Limited action
In the 16-page document, Accenture proposes limited trading opportunities to the government, among others:

Regulations that allow the recognition of digital currency wallets as unique and can therefore be assigned to specific users through know-your-customer checks.
Authorisation of organisations (Authorised Digital Currency Wallet Institutions – e.g. banks) to offer checks and their verifications to legitimise and enable identifiable wallets
Creation of framework conditions for clear rules and responsibilities for all participants in the digital currency market, which contribute to the prevention of financial crime by controlling the wallets (AML, sanctions).
According to the document, the above-mentioned means “are intended to catalyse the development of a secure, legitimate digital currency economy”.