Bitcoin has had a stellar run of late, notching up record valuation after record valuation, with a current value of $11,350 as of the writing of this article (TradingView viewed 04/12/2017) 

However, a future regulatory burden may have an impact on the spread of the currency. 

Regulatory authorities in both the UK and EU are planning on reducing the amount of anonymity currently possible while completing bitcoin transactions, as it is far less transparent than that of other currencies. This leads to accusations that bitcoin allows illegal activities such as money laundering and drug deals to avoid government attention. 

Under the proposed plan, bitcoin exchanges will be required to perform due diligence on parties to individual transactions, a process which is not currently required. 

The Treasury has outlined their plans in a written question when asked what steps they would take in order to regulate bitcoin and other crypto-currencies: 

"The UK government is currently negotiating amendments to the 4th Anti-Money Laundering Directive that will bring virtual currency exchange platforms and custodian wallet providers into Anti-Money Laundering and Counter-Terrorist Financing regulation, which will result in these firms’ activities being overseen by national competent authorities for these areas. The government supports the intention behind these amendments. We expect these negotiations to conclude at EU level in late 2017/early 2018." 

(Stephen Barclay, Cryptocurrencies: Regulation:Written question, www.parliament.co.uk , October 2017)

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The value of investments and income from them may go down as well as up and you may not get back the original amount invested. 

Information is based on our current understanding of taxation legislation and regulations which is subject to change.