
Regulator Examines Bitcoin Practices - Lightning
http://online.wsj.com/article_email/SB10001424127887323585604579006880143449754-lMyQjAxMTAzMDEwMTExNDEyWj.html
======
betterunix
I think the fears about black market Bitcoin/etc. use are unfounded. Criminals
need to pay rent and buy food like anyone else; they even pay taxes. The black
market adoption of Bitcoin should more or less track the legal adoption of
Bitcoin.

People get hung up on The Silk Road. That is not even a blip on the radar of
recreational drug trafficking or any other black market activity.

------
vessenes
The Foundation will have some comments out shortly on this.

------
Havoc
Seem kinda futile, no?

~~~
betterunix
How is it futile? Bitcoin exchanges and related services do all their business
in broad daylight, which makes their business much smoother. If Bitcoin
exchanges were black market services they would be forced to charge much
higher fees (due to the higher risk) and their business would suffer. There
would also be substantial damage to Bitcoin's perceived legitimacy if
exchanging Bitcoin money for USD involved dealing with criminals.

The truth is that Bitcoin would be a toy if there were no exchanges.
Regulating Bitcoin can be reduced to regulating exchanges, and the government
knows how to deal with that sort of business. You are talking about a couple
dozen currency exchange businesses; this is not at all difficult for the
government to regulate. Even offshore exchanges would have trouble doing
business in the US if they failed to comply with regulations; many world
governments cooperate with the US government on that sort of law.

~~~
Havoc
The genie is out of the bottle as far as I'm concerned. Even if the US freaks
out & kills all the exchanges over which it has jurisdiction BC will still
continue.

Sure it would be better if they didn't shut it down, but BC is designed to
circumvent exactly this type of interference.

