Since 2014 the government has engaged in several prosecutions of Bitcoin exchanging institutions and managers. Of the charges typically brought in these cases, one relates to the legal requirements surrounding any transactions greater than $10,000, whether involving Bitcoin or not. In order to conduct such transactions, among other things, the managing institution likely has to be licensed in some fashion under state law, the customer’s identity must be known, and the institution has to report the transaction. These requirements have been imposed with strict liability. According to the Department of Justice and many federal judges, Bitcoin is subject to these requirements.
The opposing view is that Bitcoin is not a currency and therefore not contemplated by these regulations. That question, after four years in the courts, seems to remain up in the air. Continue reading “Crypto Liability v. Popularity”