Should cryptocurrency be regulated? If so, how?
Case in point: BitLicense regulation by the New York State Department of Financial Services. https://en.wikipedia.org/wiki/BitLicense
Given the secondary (i.e., masked) nature of such transactions and the likelihood that this will be used by many to support illicit or gray market activity via "laundered" funds, this is an area where activity needs to be monitored carefully. Bitcurrency transactions are prone to abuse in a way that straight-up bartering of goods and services or use of publicly-traded sovereign currencies cannot.
Thank you for the link, Paolo.
The parts I read so far seem more like wishful thinking than a serious regulatory proposal.
I am really curious to see if any of this will ever be made effective.
The way I understand it, the only entities that can be regulated are the exchanges. But they can simply move outside of any jurisdiction and, unlike banks, do not need physical presence in the country where users transact or be a party to interbank agreements.
Considering it was only few years ago (2013) that U.S. regulators were able to squeeze Swiss banks to break confidences of their depositors, it seems that crypto regs have a long road ahead.