Federal Scrutiny On Bitcoin Ramps Up
May 29, 2013 by Sam Rolley
Directly on the heels of a Federal assault on the alternative currency Liberty Reserve, Federal regulators are discussing more oversight of Bitcoin and other virtual currencies.
â€śIt’s gotten to a level where I think for us not to take notice and to try and make some sort of determination about what to do would be irresponsible,â€ť said Bart Chilton, a commissioner on the Commodities Futures Trading Commission (CFTC) told The Hill.
Writing for Forbes, contributor Tim Worstall explains how Federal officials can destroy any alternative currency with bureaucracy:
Almost anyone at all in that international financial system has a connection into the US one. And if the US bureaucracy that oversees that US financial system decides that it doesnâ€™t like people who deal with Bitcoin, or even doesnâ€™t like people who deal with people who deal with Bitcoin, then Bitcoin just wonâ€™t have access to the international financial system. Itâ€™s not a matter of pure legality either. Bitcoin itself certainly isnâ€™t illegal, paying for something with it isnâ€™t, changing $ into $B isnâ€™t and so on. But there are enough regulations about who may do what with whom in the financial system that any determined bureaucracy can freeze someone out of it.