How Should Bitcoin Be Regulated?

[cryptocurrencylive]

How Should Bitcoin Be Regulated?

http://cadmus.eui.eu/bitstream/handle/1814/32273/183UK.pdf?sequence=1

Abstract:

The lack of clarity about Bitcoin’s legal framework has meant that none of the
regulators across the EU have yet achieved sufficient clarity in the legal treatment
of Bitcoin and its stakeholders. This uncertainty poses a number of substantial
risks to Bitcoin stakeholders and creates challenges for regulatory authorities.
Therefore, there is a need for a clear strategy for Bitcoin’s regulation aiming to
ensure the maximum possible balance between the interests of Bitcoin stakeholders
longing for the preservation of Bitcoin’s benefits and mitigation of relevant risks,
and the interests of regulators striving for ensuring the compliance of Bitcoin
stakeholders with the law. In this paper, the author develops such a strategy. Its
implementation provides for the official recognition of Bitcoin as an unregulated
technology, the recognition of that Bitcoin users interacting between each other
and Bitcoin miners are outside the regulatory scope, and the efficient application
of existing legal mechanisms to Bitcoin merchants, Bitcoin exchanges and the
relations between these categories of Bitcoin stakeholders with Bitcoin users. Thus,
the balanced regulation of Bitcoin is achieved in the form of a partial regulation
of the usage of Bitcoin at different levels of Bitcoin’s functionality.

Keywords:
Bitcoin, Banking Regulation, EU Law, Payment Systems, Regulation

[Meuh6879]

[commandrix]

I would say, don't create any special regulations for Bitcoin that don't already exist for the financial sector. Don't regulate the technology behind cryptocurrencies; just let it develop naturally. And respect the fact that people can send Bitcoin and receive Bitcoin relatively anonymously. If some spook from the government offers to "help" develop the technology, don't trust them because we've seen that the government can and will deliberately introduce weaknesses into the system that they can then use to find out who is doing what and constitutional guarantees mean nothing when there are courts that only exist to issue warrants on demand.

[Bit_Happy]

The Gov't should voluntarily decide to shut down most functions out of respect for the new way of doing things. 

[onlyu]

Bitcoin is already regulated by free market.

What the government really want is try to "control" it and decide what people can and can not do.

[Mike Christ]

The Gov't should voluntarily decide to shut down most functions out of respect for the new way of doing things. 

If only, if only

[inBitweTrust]

How Should Bitcoin Be Regulated?

http://cadmus.eui.eu/bitstream/handle/1814/32273/183UK.pdf?sequence=1

Bitcoin is already regulated by trusted nodes and mathematics. Why would we want to add flaws in the system that can be backdoors for corruption?

By all means regulate the onramps and offramps beause they deal with traditional banking. (With the same guidance other traditional banks have). Once you move on the blockchain the government is not needed and the only thing that is needed more of is nodes, miners, more code debugging/auditing , ect...

[haploid23]

How Should Bitcoin Be Regulated?

Whether it's regulated or not, the native code allows it to run, unaffected by regulation. It was never designed as such, so why would it need it at all? Every country can ban it for all they want, but the bitcoin network will still chug along.

[lihuajkl]

How Should Bitcoin Be Regulated?

Whether it's regulated or not, the native code allows it to run, unaffected by regulation. It was never designed as such, so why would it need it at all? Every country can ban it for all they want, but the bitcoin network will still chug along.

the Bitcoin network and block chain cannot be regulated and influenced by anyone, other than the network itsself. The regulation only applies to the bitcoiner, the BTC companies, BTC exchange etc.

[EnterReturn]

It shouldn't, unless you want it to lose all of its potential positive impact, in which case why even have it?

[Daniel91]

I don't think that Bitcoin should be regulated by any authority, financial institution, government etc.
Bitcoin should stay free from any official control and develop according to the free market rules.

[Ron~Popeil]

Regulating bit coin itself is impossible. The only places they can do anything is where it touches currency and there are all ready existing regulations for that in the form of consumer protection laws and aml etc.

[BADecker]

Bitcoin should be regulated just as it has been... according to the rules of math and science. The only additional regulation might be to add a method for easy escrow - easy for the non-technical people, that is - right into the protocol.

On the other hand, PEOPLE should be regulated to death. People should be regulated so that they can't use money OR Bitcoin for anything without FULL NSA and government tracking and observation. Why? This will protect Bitcoin from being regulated by government, so that government officials can use it for all the nasty, underhanded schemes that they can get away with. These include ever increasing taxes on the people who are regulated far too little already. It would also include easy transfers of funds by agencies like the CIA into all their slush funds overseas and around the world, so that they can promote more wars and disruption worldwide.

The point? Bitcoin will remain free !!!

[SOAD]

Regulation seems like such a dirty word round here. I know they can't really regulate the technology (and I hope they realise that), but the governments are going to want to regulate the way people deal with it or when they sell it for fiat. It's going to be interersting to see how each different government deals with it though and it'll be funny watching how badly they screw up.

[Pingu]

I don't think it should be regulated. It regulates itself, though I understand that the powers that be are going to anyway.

[BADecker]

I don't think it should be regulated. It regulates itself, though I understand that the powers that be are going to anyway.

Bitcoin should ABSOLUTELY be regulated. It should be regulated just as it IS BEING REGULATED, by the math and science of nature, that are being used in the protocols.

In fact, there is NO OTHER WAY to regulate Bitcoin. None of the governmental regulation is Bitcoin regulation. ALL  of the governmental regulation - 100% of it - is PEOPLE regulation.

Personally, I'm a bit tired of being regulated by government so that they are forcing me to do their will. Isn't this the reason that Satoshi invented Bitcoin in the first place? because he was sick and tired of the banks and governments regulating our lives in ways that we didn't want?

If you want to get regulation out of your life, you need to FIRST recognize that governments don't regulate Bitcoin. THEY ONLY REGULATE PEOPLE !!!

[bitgeek]

I think it shouldn't be regulated at all, it's fine as it is.

[Possum577]

This is a trick question, right?

What does regulation mean? Ha, there should be very little regulation...let the community regulated it based on their actions not a set of by-laws and infrastructure.

[keithers]

I don't think it should be regulated at all.   I do however think that it is naive to believe that there could ever be adoption on a massive scale without governments stepping in and sticking their hands in everyone's pockets.

At the end of the day, they pretend to care about people's financial well-being, but they really don't.   They just want to make sure they are getting their piece of the tax pie.

[Anders]

Minimal regulation, just enough so that bitcoins can be used in ordinary markets. Otherwise there may be a split like this:

"Why Bitcoin May One Day Split Into Black and White Coins

Rumors are swirling that as governments move to integrate and legitimize bitcoin, it could have a divisive and lasting effect on the virtual payment system. Forcing regulations on bitcoin could divide the digital currency into two camps: coins that are regulated and managed by a government or central agency, and coins that remain pseudonymous and decentralized. White coins and black coins." -- Full story: http://motherboard.vice.com/read/why-bitcoin-may-one-day-split-into-black-and-white-coins