Bitcoin, the decentralized currency, faces governmental regulation as the cryptocurrency proliferates. Coin Center has proposed digital currency friendly regulations which will encourage investment and innovation while ensuring proper regulation. Coin Center’s guidelines follows proposed Bitcoin-friendly regulations in numerous states including New Hampshire and Utah. Other regulations, like the New York “bit-license,” have been considered excessively strict by proponents of bitcoin. The report presented by Coin Center is meant to be used as a template by states that wish to encourage bitcoin powered innovation; a sentiment Coin Center’s Executive Director Jerry Brito expresses, saying:
The state that reaps the benefits of new technologies, new jobs and enhanced financial inclusion will be the state that first discovers a path worth following. We hope this report will help in that endeavor.”
Coin Center recommends that license requirements be only required for those who have unilateral control over consumer funds. The center also recommends anti-money laundering regulations for digital currencies, if required at all, do not exceed the federal regulations. The report states that digital currency should be allowed for complying with capital holding requirements. Overall, the report acts as a model for flexible and encouraging regulation of digital currency. The report itself is not a draft or proposal for regulation but instead models ideal language for bitcoin friendly legislation. The report explains the position of the center saying:
Intermediaries who do not assume a position of trust, nonfinancial uses and individual access are digital currency innovations that should be encouraged. These intermediaries can benefit both consumers and businesses through improved financial privacy, financial inclusion, and vibrant technology-based economies. These uses should not be burdened by compliance costs that lack concomitant consumer protection benefits.”
This report presented by Coin Center places the organization in a position of leadership moving forward in the digital currency terrain. While bitcoin may be a decentralized currency leaders within the digital currency industry are establishing themselves in order to shepherd the fledgling currency into the mainstream. Along with the MIT Digital Currency Initiative, Coin Center is likely to take over where the Bitcon Foundation left off in finding practical processes for integrating bitcoin into common financial practice.
Read More – Coin Center Issues a Flexible Template for Bitcoin Regulation (The Bitcoin Magazine, Guilio Prisco) Coin Center Publishes Framework for State Digital Currency Regulation (Coin Center, Jerry Brito)