An increasing number of jurisdictions, such as New York, California, and the Isle of Man are developing legal initiatives specifically directed toward digital currency. Many other jurisdictions are modifying their existing laws to more clearly and specifically address digital currency and its applications. Even in jurisdictions where such initiatives are not underway, digital currency is already subject to an extensive and complex set of legal compliance obligations established by existing laws, including contract, commercial transactions, criminal, property, and consumer protection requirements. Virtually every category of law already has influence over virtual currencies and their use. Legal compliance efforts are already necessary for all members of the digital currency community, ranging from casual users all the way through the more active members of the global virtual currency community. In the world of digital currency, legal compliance is a vital and complicated challenge which is already present and demands immediate attention.
Keywords: Antitrust, arbitration, BitLicense, Bitstamp, Butterfly Labs, commercial transactions, consumer complaints, Consumer Financial Protection Bureau, criminal law, disclaimers, escrow, Federal Trade Commission, fraud, insurance, intermediaries, liability limits, Mt. Gox, smart contracts, theft, trusted platforms.