An increasing number of jurisdictions, such as New York, California, and the
Isle of Man are developing legal initiatives specifically directed toward digital currency.
Many other jurisdictions are modifying their existing laws to more clearly and
specifically address digital currency and its applications. Even in jurisdictions where
such initiatives are not underway, digital currency is already subject to an extensive and
complex set of legal compliance obligations established by existing laws, including
contract, commercial transactions, criminal, property, and consumer protection
requirements. Virtually every category of law already has influence over virtual
currencies and their use. Legal compliance efforts are already necessary for all members
of the digital currency community, ranging from casual users all the way through the
more active members of the global virtual currency community. In the world of digital
currency, legal compliance is a vital and complicated challenge which is already present
and demands immediate attention.
Keywords: Antitrust, arbitration, BitLicense, Bitstamp, Butterfly Labs, commercial
transactions, consumer complaints, Consumer Financial Protection Bureau, criminal
law, disclaimers, escrow, Federal Trade Commission, fraud, insurance,
intermediaries, liability limits, Mt. Gox, smart contracts, theft, trusted platforms.
