Bitcoin might prompt regulatory shift

Author: Ashley Lee | Published: 25 Jul 2014

Regulators concerned about money laundering are scrutinising Bitcoin. But investor participation in the currency’s market may signal a paradigm shift in financial regulation.

Anti-money laundering regulators have been wary of Bitcoin since its move from online markets such as Silk Road to an asset class for risk-taking investors.

The Financial Action Task Force (FATF) and the European Banking Authority (EBA) recently published papers on Bitcoin and money laundering. Asian jurisdictions, including Japan, Singapore, Hong Kong and China, are contemplating regulating the cryptocurrency.

Bitcoin’s popularity signals that consumers might be turning away from the regulated markets. All governments have spent an enormous amount of money, effort and time to regulate the traditional banking sector to ensure that it has consumer protections in place, observed Marianne Robinson, head of the compliance solutions group of DLA Piper Australia.

But, she added, there are increasing numbers of companies and individuals that are...


 

 

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