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: 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. Indeed, the EU already had a framework to govern the use of electronic money before the invention of Bitcoin, which was adaptable to fit cryptocurrencies such as Bitcoin. The European Central Bank has classified Bitcoin as a ‘convertible decentralized virtual currency’. The European Banking Authority (EBA) has advised European banks not to trade in any cryptocurrencies until a regulatory regime was put in place. In 2016, the European Parliament agreed to set up a taskforce to monitor cryptocurrencies with a view to combating money laundering and terrorism. The European Commission has further proposed that cryptocurrency exchanges and digital wallets would be subject to regulation in order to prevent tax evasion.