Bitcoin Regulation
Intro
What is Regulation
Crackdown scenario
Is Bitcoin a legal-tender?
Money Service Providers, AML / KYC
In Israel
Bits of Gold LTD - in a nutshell
What is regulation
Goals:
Constraints:
Industry: Compliance Experts, Software
Crackdown Scenario
Merchants, Speculators, Bitcoin businesses
One sunny day, all BTC exchanges on the planet are made illegal.
Speculators sell anywhere they can.
Price goes to Zero, end of story?
Crackdown Scenario - cont'd.
Coordination between Governing bodies ?
On the street exchanges / offshore
Invested players buy low
Intra-bitcoin economy
Is Bitcoin a Legal-Tender?
No state on the planet forces you to accept Bitcoin, or orders that taxes be paid in Bitcoin.
Practically, it is not backed by any Central Bank.
Bitcoin behaves as a "foreign currency" to all fiat currencies, while being legal-tender in no state.
Winning "Internet Legal-Tender" by merit, not law.
Regulation on a BTC exchange
Bitcoin exchanges have one leg in "real" currency.
Around the world, legislators debate about "Money Service Providers" status.
In Europe: ECB Report on Bitcoin
US: FinCEN Guidance on Virtual Currencies
KYC + AML
Know your Customer
Anti-Money Laundering
Extended Due Diligence
In Israel
Still lacking law about electronic wallets
Debates in the Knesset
Authorities actively studying Bitcoin
BTC vendors will need to adjust
Bits of Gold LTD - in a nutshell
Registered company offering BTC for ILS.
Sold with pre-made wallet, secure key.
Working closely with regulator on AML compliance.
bitsofgold.co.il