I would think regulated means the following: (Note that I don't believe this needs to be done by a government. It could be private.) 1. A governing body that

I would think regulated means the following: (Note that I don't believe this needs to be done by a government. It could be private.) 1. A governing body that can create rules and regulation for the market. 2. An enforcement body that can enact penalties for rule violations. The problem I think is not so much the governing agency, it's the enforcement for rule violators. It's one thing to punish Mt. Gox for violating the exchange terms, but what if it's some shady anonymous bitcoin exchange broker in China?