US States Edge Toward Cryptocoin Regulation

SonicSpike points out an article from the Pew Charitable Trusts' Research & Analysis department on the legislation and regulation schemes emerging in at least a few states in reaction to the increasing use of digital currencies like Bitcoin. A working group called the Conference of State Bank Supervisors’ Emerging Payments Task Force has been surveying the current landscape of state rules and approaches to digital currencies, a topic on which state laws are typically silent. In April, the task force presented a model consumer guidance to help states provide consumers with information about digital currencies. A number of states, including California, Massachusetts and Texas, have issued warnings to consumers that virtual currencies are not subject to “traditional regulation or monetary policy,” including insurance, bonding and other security measures, and that values can fluctuate dramatically. ... The article focuses on the high-population, big-economy states of New York, California and Texas, with a touch of Kansas -- but other states are sure to follow. Whether you live in the U.S. or not, are there government regulations that you think would actually make sense for digital currencies?

Comments

The sociopath's dream.

[Anonymous Coward]

Over half the Bitcoin exchanges have gone bust. Entire Bitcoin "stock exchanges" disappeared with the money. Bitcoin "investments" promising substantial returns each month were, of course, Ponzi schemes.

Bitcoin is a scam magnet. Irrevocable, remote, anonymous money transfers are the scammer's dream. (Yes, there are people talking about cryptographic escrow schemes so you can buy something with Bitcoins and have some recourse if it doesn't show up. So far, that hasn't reached usability.)

That's why Bitcoin needs regulation. If you're going to hold other people's money, you have to be regulated. Deal with it.

Up until recently, when someone like you would support laws like these and say "deal with it" it would make me very angry, like you're just dismissing me because your beliefs are more popular.

Today, I'm overjoyed to hear "deal with it". It reminds me of the time I dealt with your corporate bailouts by investing in something bailout-proof, and makes me wonder what might happen next. Just don't be upset when you aren't a part of the deal.