Legal Seminar, Denver, CO
Cryptocurrencies • Perceived Advantages/Disadvantages: – Pseudo‐anonymity (but not as anonymous as some would like) – Peer‐to‐peer (without intermediaries) (who benefits?) – Security • As long as you control your private key • As long as no one hacks the storage entity – Note emergence of private audits in this context – Regulatory framework for banks has not been scaled to this business model – more like brokerage? Area for regulatory growth? – Finality (but is this a disadvantage?) – Transaction costs (but what are the all‐in costs?) – Volatility/Acceptance (would you spend Morgan dollar?) – True scarcity? (What about substitutes?) – Computing power/Obsolescence? Cryptocurrencies – Choke Points • Chokepoints provide nexus for regulation. – AML Rules for Exchanges, Users, Miners. • MSBs (but not mere users) subject to otherwise applicable BSA/AML rules. • Exchanges/Administrators distinction. • Miners may not be exchangers by virtue of exchanging for fiat currency – but transferring to TP on or for benefit of another will result in MSB treatment. – KYC requirements for exchanges are being applied – but are they effective? – States are also engaged in regulating exchanges.
Made with FlippingBook - Online magazine maker