Is Bitcoin about to be regulated?

[DWB]

Sorry Franck. I know how much you wanted to believe this was impossible.

The decision to examine bitcoin follows similar moves by authorities in the US. The Commodity Futures Trading Commission, a US financial regulator, said last week that they were exploring how they might regulate bitcoin and protect markets and consumers.

Bitcoin has come onto the radar of the UK government, with officials gathering in London on Monday to discuss the security threats and tax concerns posed by the digital currency.

Also under consideration was the idea of creating a regulated exchange, which would be the world's first. Such an entity would go some way to addressing concerns about criminality by requiring users to provide proof of identity.

Source: http://www.cnbc.com/id/100732720

Good news is, they are looking at how to regulate it instead of just trying to strong arm it out of existence. Bad news is, if regulated and no longer anonymous, what is the point?

[woj]

looks like bitcoin community is viewing this as good news, price has been stable in the 110-120 range for a week, and this morning it's even pushing upwards towards 120...

[woj]

Originally Posted by DWB

Bad news is, if regulated and no longer anonymous, what is the point?

ease of setting it up, no fees, no chargebacks, fast transfers, no paypal/visa/mastercard drama are still pretty appealing I think...

[Serge Litehead]

without forking blockchain and actually convince users to switch to your version, you cannot simply change properties and features of bitcoin. maximum a regulatory force could achieve is a split, newer 'whitehat' version and existing to go underground.

in current form bitcoin cannot be regulated and it seems officials get at least that point, unlike some on here
what they want/will regulate and tax is (fiat) money in and out. it seems pretty reasonable and certainly achievable as most fiat transactions are electronic. good luck figuring out closed door/cash deals, exactly just like with current, real money today.

[DWB]

Originally Posted by woj

ease of setting it up, no fees, no chargebacks, fast transfers, no paypal/visa/mastercard drama are still pretty appealing I think...

That's true. If they can make it easier to set up, that would be a huge plus. Though, I have to think if they regulate it, it may fall under the same BS as the cards and PP. Hope not though.

[DWB]

Originally Posted by holograph

in current form bitcoin cannot be regulated and it seems officials get at least that point, unlike some on here what they want/will regulate and tax is (fiat) money in and out. it seems pretty reasonable and certainly achievable as most fiat transactions are electronic. good luck figuring out closed door/cash deals, exactly just like with current, real money today.

Bitcoin can be regulated through the exchangers because they all have bank accounts. Put pressure on them and Bitcoin users have no choice if they want to cash out to a currency. Every exchanger can easily be regulated, and that is exactly where they will do it.

[Klen]

Originally Posted by DWB

Bitcoin can be regulated through the exchangers because they all have bank accounts. Put pressure on them and Bitcoin users have no choice if they want to cash out to a currency. Every exchanger can easily be regulated, and that is exactly where they will do it.

Lol,every exchanger?That's like saying how every paypal - paxum exchanger on gfy will be regulated.Maybe uk and us will do something with it,but other countries most likely wont give a shit therefore there will be plenty of anonymous exchangers.

[Serge Litehead]

DWB, that's what i mean by saying "regulating and taxing fiat money in and out", i just don't look at it as Bitcoin itself being regulated that way.

[dyna mo]

Originally Posted by DWB

Bitcoin can be regulated through the exchangers because they all have bank accounts. Put pressure on them and Bitcoin users have no choice if they want to cash out to a currency. Every exchanger can easily be regulated, and that is exactly where they will do it.

how long will exchanges be around? they're the weak link in the system and actually not designed into it.

[dappz-datton]

this sounds interesting .....

[Webmaster Advertising]

Bitcoin is already taxed in the US, or at least is supposed to be, just like Paypal income.

[adultmobile]

Originally Posted by Webmaster Advertising

Bitcoin is already taxed in the US, or at least is supposed to be, just like Paypal income.

Much like any other income, companies can declare bitcoin income if they wish, there's nothing new or different from income from any other source.

The matter it is the "know your customer" banking regulations. At least at the point you convert cash into bitcoin, or bitcoin into cash, you should know who paid who. Banks are closing accounts of all the exchangers lately.
Also, except trading bitcoin just for the sake of gamble on it, I see bitcoins are mostly used for anonymous transactions such as in silk-road to buy things you don't want anyone know you purchased. So I don't think this "user base" blends well with regulations.
Further, bitcoin it is pseudonymous, not anonymous, because erveryone knows what address paid what other address - then at the moment someone cashes in dollar, must use a bank, and you know who gets the money, along with all the traces back to what he purchased in first place. There are bitcoin laundering services for this purpose but they're messy and shady.

But bitcoin it could be ehnanced in a future to make transactions really untraceable, with Zerocoin add-on or similar:

https://en.bitcoin.it/wiki/Zerocoin

If that's implemented, then really the govt's or banks can not know who paid who, and simply have people who go cash bitcoins coming from "nowhere", not even another address. At that point it could be there will be 2 type if coins, the traceable and anonymous ones. Those traceable will be legal but must declare all and send ID's like an payoneer/paxum card; those not traceable will be simply illegal for anyone to convert from and to cash.

[Paul]

Dept. of Homeland Security freezes accounts between Dwolla and bitcoin exchange Mt. Gox

http://pandodaily.com/2013/05/14/dep...xchange-mt-gox

Oh dear!

Bad news = Price plunge!

Will be interesting to see where the price goes to tomorrow! Down from $120 to $110 so far

[adultmobile]

from cnet:
-
ICE (Immigration and Customs Enforcement) Homeland Security confirms an ongoing investigation that lead to court order closing Mt.Gox's Dwolla account.
ICE focus on drug smuggling, financial and computer crimes, export enforcement.
Seized Internet domain names, sports streaming sites, arresting for jailbreaking game consoles.
-

Let's see the price graph:

[Captain Kawaii]

Originally Posted by DWB

That's true. If they can make it easier to set up, that would be a huge plus. Though, I have to think if they regulate it, it may fall under the same BS as the cards and PP. Hope not though.

I dont think they will give bitcoins an advantage over visa and other cc companies. Regulation means fall in line or prepare to die. Its not me saying/thinking this - "its what they do. Its all they do." TERMINATOR - This time its for bitcoins.

[Captain Kawaii]

Originally Posted by KlenTelaris

Lol,every exchanger?That's like saying how every paypal - paxum exchanger on gfy will be regulated.Maybe uk and us will do something with it,but other countries most likely wont give a shit therefore there will be plenty of anonymous exchangers.

Ever heard of FTA's? If a country does not join regional FTA's it will be choked to death. Rogue countries will have to jump in line or become targets.