Title: An In-depth Look at Bitcoin Laws & Future Regulation
Headings: An In-depth Look at Bitcoin Laws & Future Regulation
An In-depth Look at Bitcoin Laws & Future Regulation
What are the concerns?
Current Approach to Regulation
USA
European Union
China
Tax
Future Approach

Content: The decentralized nature of Bitcoin makes it very difficult to enforce restrictions on Bitcoin, even in those countries that have banned it. Below, we have a look at the approach of a number of different jurisdictions. USA
The US does not yet have a uniform approach to the regulation of Bitcoin at a Federal or State level. The Federal Reserve does not have a policy towards the regulation of Bitcoin, although it has said that it may be a matter that they will have to consider at some point in the future, The Financial Crimes Enforcement Network (FinCEN), an agency within the US Treasury Department, published guidelines about cryptocurrencies as early as 2013, which suggested that although using cryptocurrency for purchasing legal goods and services was not illegal, the mining or trading of bitcoin as well as the operation of exchanges on which Bitcoins are traded would fall under the label of “money transmitters “ and would be subject to the same Anti-Money Laundering (AML) and Know Your Client (KYC) measures as other money service businesses. FinCEN has also been involved in an action again the Russian-domiciled BTC-e exchange for a breach of US AML laws, which was the first action taken against a non-US based exchange. The US Securities and Exchange Commission (SEC) have yet to issue any regulations on Bitcoin or cryptocurrencies. However, they have issued a number of warnings about the volatility and risk of fraud in the sector, including a warning from the chairman of the SEC in November 2017 relating to the risks surrounding ICO’s. The US Commodity Futures Trading Commission (CFTC) has designated Bitcoin to be a commodity, and although the CFTC does not regulate Bitcoin directly, it does have authority in respect of commodity futures that are directly connected to Bitcoin. For example, the CFTC recently accepted a proposal by the Chicago Mercantile Exchange to allow Bitcoin and other cryptocurrency to be cleared in the same manner as other products, which could have a major effect on the value of Bitcoin. At a State level there have been various approaches taken by individual States, particularly in relation to the regulation of exchanges or other money transmitters.