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 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. Some States, such as New York, have made attempts to make specific licensing regimes that are applicable to cryptocurrency exchanges whereas other states, such as Texas, continue to apply existing financial laws and regulations to the use of cryptocurrencies. However, the effect of this licence in New York was considered by some to be a stifling of the fintech industry’s use of cryptocurrency in that State. In fact, the New York Bitlicence is currently being challenged by the Bitcoin Foundation, who are increasingly active in lobbying against large scale regulation of the industry. The Bitcoin Foundation has stated its opinion that the US government is increasing federal and state regulation of Bitcoin in the US with a view to “control and stifle the adoption and use of so-called ‘virtual currencies’ such as Bitcoin.” European Union
The EU has taken a more open approach to Bitcoin than the US, as well as offering less ambiguity.