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> there are existing regulations that make it difficult for a decentralized system to work (e.g. know your customer laws and centralized counterparty systems).
by aminok 10y ago
> there are existing regulations that make it difficult for a decentralized system to work (e.g. know your customer laws and centralized counterparty systems).
Those regulations don't apply to peer-to-peer electronic cash transactions, just like they don't apply to physical cash transactions.
- jeffreyrogers 10y agoThey apply when you try to convert from a fiat currency to a digital currency and vice-versa. And trading derivatives contracts on a blockchain would almost certainly violate US laws. edit: there are also regulations that apply to physical cash transactions if they are over a certain amount.
- aminok 10y agoYes conversion is subject to regulation but I don't see how that prevents cryptocurrency/blockchain applications from being useful. >And trading derivatives contracts on a blockchain would almost certainly violate US laws. These laws will eventually be made obsolete, the same way obscenity laws were made obsolete by the internet.
- mpeg 10y agoIn the EU the e-money regulation applies to any kind of electronic cash transaction. If you become an Electronic Money Institution, in most cases you'll still have to follow KYC and AML laws. Bitcoin companies in the EU all do after certain thresholds.
- aminok 10y agoYes, but that's not peer-to-peer. That's like a company ferrying physical cash from one party to another. They become a financial intermediary and become subject to financial regulations. You don't have to take the role of a financial intermediary if you're an enterprise that uses cryptocurrency. Microsoft accepts BTC, but is not a money transmitter.