Advancing a Framework for Regulating Cryptocurrency Payments Intermediaries
1 Pages Posted: 14 Oct 2015
Date Written: 2015
This Article looks at competing models for regulating providers of services to individuals and businesses that take cryptocurrencies in payment for goods and services, including operators of online wallets and exchanges, and other cryptocurrency market intermediaries whose functions resemble “money service businesses” or “money transmission.” We conclude that, in addition to whatever “money services” or “money transmission” prudential regulation the States or federal government may adopt, the operation of wallets and exchanges requires a new commercial law that lays out rights and liabilities of cryptocurrency users in a robust and transparent fashion. We use Article 4A of the Uniform Commercial Code as a model for regulating cryptocurrency transactions in which intermediaries play a role.
Keywords: virtual currency, Cryptocurrency, Online wallets and exchanges, Payments, Payments intermediaries, Money Services Businesses, Money transmission, Uniform Commercial Code, Article 4A Commercial law
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