Bitcoin Regulations Not Welcomed by Everyone in Bitcoin Community

By July 17, 2016Bitcoin Business

There are lots of debates happening in the Bitcoin community. While the most prominent one is on block size, another significant topic is regarding Bitcoin regulations. There are a set of companies and organizations stressing for regulations in the Bitcoin sector , which the opposite camp believes will violate the very principles the digital currency is built on.

These debates get hotter each time a new state in the United States decides to introduce digital currency legislations. For starters, Bitcoin was created as a peer to peer method of transaction, with the main intention of keeping banks, governments, and other third parties from interfering with the financial freedom of individuals. Even the timing of Bitcoin’s introduction coincides with the time when the US banking system was reeling under economic slowdown and barely managing to keep their heads above the water without government’s bailout packages.

The introduction of regulations that require Bitcoin companies to act like conventional banking sector by collecting user information, tracking transactions, blocking accounts and reporting to the government will negate almost all advantages the digital currency has over fiat currency. However, those who are calling for regulation of bitcoin and bitcoin-based services believe that the digital currency regulations will make it easier for them to conduct business, without having to worry about legal issues, even if it means the interest of general public takes a backseat. Those calling for the implementation of regulations are not the individuals of the community, but a handful of companies that stand to make lots of money in the long run.

At the same time, governments from various states of the United States have started to draft their own regulations for digital currency and digital currency based applications. The State of New York was the first one to do so and North Carolina, the […]

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