Bitcoin and the challenges for financial regulation
Anastasia B. Sotiropoulou, Dominique Guégan · Capital Markets Law Journal · 2017
In a relatively short period of time, virtual currencies ... However, the emergence of VCs has also raised significant concerns about potential illegal activities related to these currencies, such as terrorism and money laundering, customer theft and fraud. The expansion of VCs may also threaten the traditional money issuance system, question the role of banks and other financial institutions in funds transfers and present a risk for the financial stability in general. Accordingly, governments, regulators and law enforcement authorities world-wide have been forced to focus on the implications of these currencies. In this light, the regulatory challenges to be addressed seem rather obvious: designing a balanced regulatory framework that encourages responsible development of an innovative technology while providing protection for consumers, businesses and the financial system.