Blockchains and Bitcoin: regulatory responses to cryptocurrencies

Guadamuz, Andres and Marsden, Chris (2015) Blockchains and Bitcoin: regulatory responses to cryptocurrencies. First Monday, 20 (12). ISSN 1396-0466

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Abstract

This paper examines Bitcoin from a legal and regulatory perspective, answering several important questions.

We begin by explaining what Bitcoin is, and why it matters. We describe problems with Bitcoin as a method of implementing a cryptocurrency. This introduction to cryptocurrencies allows us eventually to ask the inevitable question: is it legal? What are the regulatory responses to the currency? Can it be regulated?

We make clear why virtual currencies are of interest, how self-regulation has failed, and what useful lessons can be learned. Finally, we produce useful and semi-permanent findings into the usefulness of virtual currencies in general, blockchains as a means of mining currency, and the profundity of Bitcoin as compared with the development of block chain technologies. We conclude that though Bitcoin may be the equivalent of Second Life a decade later, so blockchains may be the equivalent of Web 2.0 social networks, a truly transformative social technology.

Item Type: Article
Keywords: bitcoin, blockchain, cyberlaw, regulation
Schools and Departments: School of Law, Politics and Sociology > Law
Subjects: K Law
K Law > K Law in General. Comparative and uniform Law. Jurisprudence > K0520 Comparative law. International uniform law
Depositing User: Andres Guadamuz
Date Deposited: 17 Dec 2015 13:21
Last Modified: 06 Mar 2017 09:05
URI: http://sro.sussex.ac.uk/id/eprint/58872

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