BTC Wires: The challenges that come to the forefront with the use of virtual currencies are quite evident. With time regulators have begun to address this issue. According to J.Dax Hansen, a partner at law firm Perkins Coie, digital currencies, token sales and blockchain of initiatives of all kind have brought about a global phenomenon, which is unlike anything that he has seen.
J.Dax Hansen further states that as the technology, which is the backbone of the developments is disrupting, the products and services across every industry, regulators and law enforcers are finding it tough to keep up. The reason behind it is that the virtual currencies now is mainly comprised of the most popular cryptocurrency bitcoin, which largely operates outside the conventional norms of the financial system. Thus, it becomes quite natural that regulators are concerned about the money laundering, tax evasion and terrorist funding.
In the States, both the Commodities Future Trading Commission and the Securities and Exchange Commission have spread out series of the announcement in recent few months on the concerned subject, which include some of the strong statement made by the SEC chairman, Jay Clayton. At a meeting of the Federal Reserve Bank of New York, in November, Jay Clayton came up with a statement according to which, the organisation is going to pursue them who are involved into an offering that is not legal as it will have a destabilizing effect on the market.
According to the recent developments the Securities and Exchange Commission have not approved of any exchange-traded products which
involve cryptocurrency or other such assets. Further, SEC has also not registered any ICOs. The CFTC (Commodity Futures Trading Commission) has designated bitcoin as a commodity. The organisation went on to announce that any frauds involving bitcoin trading in interstate commerce along with the regulation of commodity futures which are related bitcoin fall under its authority.