Should The Bitcoin Block Chain Be Regulated? Bitcoin Legal Issues, Regulation And Compliance

Interview with Juan Llanos Of The Bitcoin Foundation

Juan Llanos, member of the Regulatory Affairs Committee of the Bitcoin Foundation

Juan Llanos, member of the Regulatory Affairs Committee of the Bitcoin Foundation

Just as I realize that Bitcoin is such a world changing technology, government agencies and regulators are also realizing how risky it may be.

It’s not about government obstructionism, it’s about money laundering, terrorism financing, and the integrity of the financial system. These issues are top priority in Capitol Hill and the White House and we just have to live with it.

Juan Llanos is member of the Regulatory Affairs Committee of the Bitcoin Foundation and a veteran anti money laundering expert. In this interview he opened my eyes as to what are all the risks involved in starting a Bitcoin or digital currency business.

Yes, FinCen has laid out guidelines in March of this year, but the issues are more profound and more government agencies, federal and state, are looking at crypto-currencies and analyzing their nature to decide whether to establish more controls or not.

My personal opinion is that FinCen settled the “money transmitting” and “exchange from digital to fiat” issues, but the other questions are: Is Bitcoin an investment security? Where are bitcoins deposited? Is the block chain the “bank”? Should the block chain itself be regulated just like financial institutions are?.

Of course the best scenario would be to regulate the layer of the services operating on top of the Bitcoin network instead of Bitcoin itself, but the issues are still open and thus so are the risks. This includes trading risks.

Please watch my interview with Juan Llanos:

About Donald McIntyre

From stock broker to internet entrepreneur, to financial adviser, to Newfination! Donald McIntyre started his career on Wall Street in 1992 working as an Investment Consultant for UBS Securities and then for Smith Barney Inc. In 1999 he started Dineronet.com, a financial portal for Latin America, with the support of investors SoftBank and Carlos Slim. In 2002 Donald started McIntyre S.A. to provide financial advisory services to Carlos Slim’s Inbursa and after 2004 opened the practice to private clients. In January of 2013 he started Newfination to help consumers discover the best new finance services to manage their money.

3 thoughts on “Should The Bitcoin Block Chain Be Regulated? Bitcoin Legal Issues, Regulation And Compliance

  1. Juan is one of the most knowledgeable people I’ve encountered when it comes to Bitcoin. Excellent interview.

  2. Minute 12:13 of interview: ”We have to think that government IS society. Government represents society through republic institutions and through Congress and through the enactment of regulation….. “.

    Dear Juan, I must disagree. Government is understood to represent interest groups, not society as a whole. The dominant interest groups of the moment will influence, and may determine, government policy. Your understanding of what the “policy imperatives are from the government” must recognise the sectoral interests that lead to the genesis of policy, or propose that policy somehow falls from the sky in virgin form. It does not of course. Any understanding of the regulation of Bitcoin must begin with an understanding of who will enjoy a gain, and who will endure a loss, as a result of Bitcoin. I cannot accept the naïve view that government is always good, acting for society as a whole, even-handed, balanced and fair. I am certain that the state (a more complex creature than government and Congress), so obviously owned and controlled by the dominant interest group of our time, the banks, will now attack Bitcoin for predictable reasons. During the next phase of Bitcoin evolution it will be necessary to those supporting Bitcoin to defend themselves from the government, which is a bank, which is a government, which is a bank. The two cannot now be viewed separately and therefore Bitcoin is a risk to the interest group that today controls the state. Regulation by the state will be the first wave of attack. One aspect of the attack will be based upon “the potential for abuse” of Bitcoin, absurdly, and as though state money is never used for crime. All crime until the year 2010 was conducted with state money. In fact the state is talented at crime using its own money.

    The proposition that Bitcoin should be made to prove that it cannot be abused is not, as you incorrectly assert at 18:59, “a concern, a legitimate concern” or your claim at 19:23 that there “have to be some basic safeguards”. The (faux-)concern is illegitimate and basic safeguards are built-in to Bitcoin. What is not built in is state control.

    Dear Juan, thank you for your time and thoughts, however you managed to appear rather a little an apologist for state control, which I think is alien to Bitcoin.