Abstract
In this article, the author tracks developments in bitcoin trading and considers regulatory responses. 2017 has witnessed a so-called bitcoin bubble, as entrepreneurs and professional investors rushed into the market to take a bet on the upcoming cryptocurrency age. The price of a bitcoin exceeded $19,300 in December 2017, worth only $0.06 in July 2010. The popularity of bitcoin mining and trading activities has raised legal and regulatory concerns pertaining to anti-money laundering, evasion of forex regulations, the illegal fundraising of start-ups by Initial Coin Offerings (ICOs), as well as a potential financial crisis. Global financial regulators have acted proactively to regulate bitcoin. Most recently, China, once accounting for 90% of bitcoin trading volume, issued an immediate ban of ICOs and ordered the reorganisation of three major bitcoin exchanges: OKCoin, Huobi and BTCC. Over-The-Counter (OTC) transactions have not been affected. Financial authorities in certain countries have been testing state-backed cryptocurrencies.
| Original language | English |
|---|---|
| Pages (from-to) | 178-182 |
| Journal | BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW |
| Volume | 33 |
| Issue number | 3 |
| Publication status | Published - 1 Mar 2018 |
Keywords
- bitcoin
- cryptocurrency
- virtual currency
- financial bubble
- financial risk
- financial crisis
- financial regulation
- initial coin offering
- ICO
- money laundering
- law and finance
- law and economics
