Presentation is loading. Please wait.

Presentation is loading. Please wait.

Math-Based & Virtual Currencies: Legal & Regulatory Frontiers October 6, 2013 Las Vegas MONEY 2020.

Similar presentations


Presentation on theme: "Math-Based & Virtual Currencies: Legal & Regulatory Frontiers October 6, 2013 Las Vegas MONEY 2020."— Presentation transcript:

1 Math-Based & Virtual Currencies: Legal & Regulatory Frontiers October 6, 2013 Las Vegas MONEY 2020

2 OVERVIEW What are math based and virtual currencies? What are the legal and regulatory challenges? How are the challenges being addressed? Whats beyond Silk Road …

3 New Currencies What are the difference between Virtual Digital Crypto How many exist? What are distinguishing characteristics? Centralized v. decentralized Reserved or non-reserved Other characteristics

4 Legal/Regulatory Frontiers FinCEN – Money Services Business State money transmitter licensing Banks/bank regulators Taxes Consumer protection Other?

5 Elephant in the Room Money Laundering and Terrorist Financing

6 The Elephant in the Room Money Laundering And Terrorist Financing

7 Regulation by Enforcement e-gold Digital Currency is the new frontier; its a wild wild west (2008) Plea agreement with founder of system and system Judge: system not illegal, founder had no criminal intent Exchangers indicted Liberty Reserve System allegedly illegal International cooperation Treasury Department used its Special Measures – primary money laundering concern Silk Road International cooperation Focus on use of the currency, not the system itself

8 Silk Road Indictment USA v. Ross William Ulbricht Charges Money Laundering Conspiracy Narcotics Trafficking Conspiracy Computer Hacking Conspiracy Bitcoin-based payment system Bitcoin bank Bitcoins held in escrow Tumblers Mistakes Whats missing?

9 End of the (Silk)Road Bitcoins are not illegal in and of themselves and have known legitimate uses. However, Bitcoins are also known to be used by cybercriminals for money-laundering purposes, given the ease with which they can be used to move money anonymously. USA v. Ulbricht

10 Anonymity vs. Privacy What is a Bitcoin Tumbler, it is sometimes known as a Bitcoin Mixer or a Bitcoin Laundry. It is used to disguise the transaction chain leading to your account by passing through one or more intermediaries. This is very useful if you are a business that does not want your bitcoin transactions public knowledge. Looking for greater obfuscation? Try BitLaundry, for all your Bitcoin washing needs!BitLaundry

11 You have to take a leap of faith Trust will follow Man of Steel (2013)

12 D.A.T.A Mission Members Methods Means Message

13 Bitcoin Foundation Members Mission Means Methods Message

14 Math-based currencies Bitcoin exchange - outside US ? Japan Germany India Canada Singapore

15 Math-based currencies Stalled money transmission leads to innovation Alternate purposes Manufacturing Supply-Chain intermediaries Bitcoin protocol layering Not altcoins, but existing on top of bitcoin

16 As History Shows… Evolution Always Wins Man of Steel (2013)

17 Speaker Contacts Carol Van Cleef Patton Boggs, LLP gs.com Patrick Murck Bitcoin Foundation ation.org Constance Choi Payward, Inc. m Pervees Faisal Islam Centra Payments Solutions yments.com


Download ppt "Math-Based & Virtual Currencies: Legal & Regulatory Frontiers October 6, 2013 Las Vegas MONEY 2020."

Similar presentations


Ads by Google