A Light Touch of Regulation for Virtual Currencies

Publication Type

Book Chapter

Publication Date

2015

Abstract

With the rise of Bitcoin, governments are increasingly concerned about the risks that the market will face as a result of these virtual currencies. This chapter considers the virtual currency landscape from a market supervisory perspective. First, Bitcoin is introduced as a type of virtual currency known as a decentralized cryptocurrency, and the main participants in such a market are identified. A brief on the legitimate uses and potentially regulable risks of virtual currencies is then provided before the wide-ranging spectrum of existing regulatory approaches and opinions is surveyed. Finally, this chapter concludes by recommending a light-touch approach to the regulation of cryptocurrencies like Bitcoin.

Keywords

Virtual currency, Bitcoin regulation, Financial services, Comparative law, Light-touch regulation, Risk management

Discipline

Business | E-Commerce

Research Areas

Quantitative Finance

Publication

Handbook of Digital Currency: Bitcoin, Innovation, Financial Instruments, and Big Data

Editor

Lee, David K. C.

First Page

309

Last Page

326

ISBN

9780128021170

Identifier

10.1016/B978-0-12-802117-0.00016-3

Publisher

Elsevier Academic Press

City or Country

Amsterdam

Additional URL

https://doi.org/10.1016/B978-0-12-802117-0.00016-3

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