Digital Currency: An International Legal and Regulatory Compliance Guide

Digital or ‘virtual’ currencies pose significant challenges for government, financial and legal institutions because of their non-physical nature and their relative anonymity to physical ...
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Effective Integration of Digital Currencies and Traditional Securities Regulation

Pp. 71-76 (6)

Jeffrey H. Matsuura

Abstract

Securities regulators around the world are examining the extent to which digital currency activities and platforms are within the scope of their jurisdiction. Most regulators take the position that the extent of their oversight authority is entirely dependent on the actual functional activities of the digital currency system operations. In some jurisdictions, digital currency operations deemed to be electronic services or financial product offerings are subject to oversight. Key participants in the virtual currency community, such as Overstock.com and LedgerX, are increasingly taking the position that they will pursue full compliance with existing regulatory requirements to the extent that their digital currency operations fall within the scope of existing regulation. This approach is prudent and likely to facilitate growth of the virtual currency market. The approach does, however, require extensive legal compliance activity.

Keywords:

Australia, California, China, Denmark, electronic services, financial products, financial services, fraud, LedgerX, New York, Overstock.com, Ponzi scheme, Securities and Exchange Commission, Shavers case.

Affiliation:

Enterprise Business Law Group LLC, USA.