What is Cryptocurrency?

A cryptocurrency is a digital asset designed to work as a
medium of exchange that uses cryptography (also known
as the Blockchain) to secure its transactions, to control the
creation of additional units, and to verify the transfer of
assets.2
The Blockchain is essentially a ledger which records
all transactions. This will of course be jargon to many.
In simple terms, it allows a user to securely send or receive
money across the internet to someone they might not
know and who might not have any real traceable identity.
In effect, they’re anonymous payments.
Governments have been slow to recognise the growing
significance of cryptocurrency in financial transactions.
As such, there are questions as to how existing regulatory
and legislative frameworks apply to digital currencies.
However, the UK and many other EU governments have
confirmed that they will seek to bring cryptocurrencies
in line with anti-money laundering and counter terrorist
financing legislation. There is of course a concern with
regards to the impact of illegal transactions and a possible
criminal element behind digital currency, which will
hopefully be addressed as part of this regulatory overhaul.