Title: What are the Legal Risks to Cryptocurrency Investors?
Headings: What are the Legal Risks to Cryptocurrency Investors?
What are the Legal Risks to Cryptocurrency Investors?
Cryptocurrencies as Property
Decentralized Status
Business Registrations and Licensing
Fraud and Money Laundering

Content: In the case of electronic money, a trusted financial institution is involved in creating and settling deposits and debt claims. Neither of these concepts applies to cryptocurrency transactions. Because of this fundamental difference, legal confusion between parties in various types of digital currency transactions is a real possibility. Once again, because of the decentralized state of these currencies, the path of legal recourse in these situations can be difficult to assess. Business Registrations and Licensing
A growing number of businesses are taking advantage of digital currencies as a form of payment. As in other financial areas, businesses may be required to register and obtain licensure for particular jurisdictions and activities. Owing to the complex and evolving legal status of digital currencies, this area is significantly less clear for businesses operating in the crypto market. Companies which only accept cryptocurrencies, for example, may not need to register or obtain licenses at all. On the other hand, they may be required to submit to special considerations depending upon their jurisdiction. The onus of responsibility falls on business owners and managers to insure that they are following proper legal procedure for their operations at both the local and state levels.