Anonymity
The prospect of near-complete anonymity in financial transactions has been a much-lauded feature of the Bitcoin. This praise typically originates from those who support anti-government, and libertarian views of the financial system and Internet commerce. Those with more moderate views see that utility exists in a financial system that provides a level of anonymity for those operating within it, but it is understood that the funding of undesirable behaviors must be limited and some regulation must exist.
Anonymity is preserved in Bitcoin transaction because all that is required to be disclosed to a counterparty in a transaction is the public key of a randomly assigned Bitcoin address. A new address may be acquired at anytime, free …show more content…
These licenses would allow small startup companies that look to deal in Bitcoin and other cryptocurrncies to comply with lighter standards of anti money laundering regulation than traditional financial institutions. The goal of the regulations is to allow innovation to flourish by reducing the cost of compliance, while balancing the risks of money laundering and other illicit activity.
The similarity between the two regimes is that they mainly target the transition of Bitcoin from virtual currency into common fiat currency. This method of regulation assumes that criminals that use the Bitcoin’s anonymous nature will eventually need to convent their Bitcoins into another currency. This may be an effective strategies for the time being, however, if Bitcoin become a widely accepted medium of exchange in both the online and the offline world the need to exchange currencies in order to access real value may be …show more content…
The producers make software which give less computer savvy individuals to access to the Bitcoin protocol. Requiring producers of this type of software to comply with anti-money laundering “know-your-customer” requirements is one possible way of further regulation. However, the disperse and multi-jurisdictional nature of the Internet could make this a near impossible task. Additionally, this does not prevent individuals from accessing the open source Bitcoin protocol without the need for special “end-user”
The prospect of near-complete anonymity in financial transactions has been a much-lauded feature of the Bitcoin. This praise typically originates from those who support anti-government, and libertarian views of the financial system and Internet commerce. Those with more moderate views see that utility exists in a financial system that provides a level of anonymity for those operating within it, but it is understood that the funding of undesirable behaviors must be limited and some regulation must exist.
Anonymity is preserved in Bitcoin transaction because all that is required to be disclosed to a counterparty in a transaction is the public key of a randomly assigned Bitcoin address. A new address may be acquired at anytime, free …show more content…
These licenses would allow small startup companies that look to deal in Bitcoin and other cryptocurrncies to comply with lighter standards of anti money laundering regulation than traditional financial institutions. The goal of the regulations is to allow innovation to flourish by reducing the cost of compliance, while balancing the risks of money laundering and other illicit activity.
The similarity between the two regimes is that they mainly target the transition of Bitcoin from virtual currency into common fiat currency. This method of regulation assumes that criminals that use the Bitcoin’s anonymous nature will eventually need to convent their Bitcoins into another currency. This may be an effective strategies for the time being, however, if Bitcoin become a widely accepted medium of exchange in both the online and the offline world the need to exchange currencies in order to access real value may be …show more content…
The producers make software which give less computer savvy individuals to access to the Bitcoin protocol. Requiring producers of this type of software to comply with anti-money laundering “know-your-customer” requirements is one possible way of further regulation. However, the disperse and multi-jurisdictional nature of the Internet could make this a near impossible task. Additionally, this does not prevent individuals from accessing the open source Bitcoin protocol without the need for special “end-user”