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UK lawmakers ban Bitcoin investors rom using their mega-profits to buy real estate amid money-laundering fears

January 16, 2018  |  Posted by: Francesca Falzarano
UK lawmakers ban Bitcoin investors rom using their mega-profits to buy real estate amid money-laundering fears

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The value of the virtual currency Bitcoin has increased close to 1,500% in the past year.

Currently, investors who’ve made a mint are attempting to cash in on their unexpected windfall by investing in the UK’s property bubble.

However, lenders are now concerned about the source of the money and are rejecting investors for mortgages, the Financial Times reported.

Broker Mark Stallard indicated that one investor had a £40,000 deposit pot after he invested in bitcoin but was still denied a loan.

Stallard, from House and Holiday Home Mortgages: said: “The first lender I rang asked me what a cryptocurrency was. I rang two others, and they said they would not touch it. When I mentioned where the money had come from there was reluctance to help or understand the problem.”

“I do not believe the mortgage providers are ready for this issue and research tells me that more people will be knocking on our doors with funds made or raised in this fashion,” Stallard added.

The issues with cryptocurrencies, such as bitcoin, are that central banks do not regulate them.

Instead, they are held digitally by individuals using electronic identities which permit them to remain anonymous and can be used by criminals.

Multiple building societies said they would not accept a deposit derived from a cryptocurrency, while banks such as Santander, Nationwide, and Aldermore indicated that no formal policies are in place.

The Building Societies Association said: “There is no regulation of these electronic currencies, which puts them into the highest risk category in relation to money laundering. It is well known that such currencies are popular with criminals, who use them to launder the proceeds of crime.”

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