Bitcoin: Where Two Worlds Collide

There are over 275 virtual currencies in existence today. One of these currencies is Bitcoin, the largest andmost recognised virtual currency in the world. With its exponential growth over recent years, Bitcoin isbringing a degree of permanence for, and dependability on virtual currencies that can n...

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Main Author: Russ Marshall
Format: Article
Language:English
Published: Bond University 2015-12-01
Series:Bond Law Review
Online Access:https://doi.org/10.53300/001c.5635
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author Russ Marshall
author_facet Russ Marshall
author_sort Russ Marshall
collection DOAJ
description There are over 275 virtual currencies in existence today. One of these currencies is Bitcoin, the largest andmost recognised virtual currency in the world. With its exponential growth over recent years, Bitcoin isbringing a degree of permanence for, and dependability on virtual currencies that can no longer be ignored byregulators. While an increase in international regulatory activity over the past 12 months suggests that somegovernments understand this, Australian regulators appear reluctant to act. In addition to examining Bitcoin’soperational system in detail, this article examines the affect that Bitcoin is having on two key features of thefinancial system: (1) the money laundering and illicit finance supply system; and (2) the payment system. Bycomparing the effectiveness of the response measures enacted by Australian and international regulators inCanada, Singapore, the United States, and the United Kingdom, this article demonstrates that even thoughAustralia’s current payment system policy is capable of addressing the threats posed by virtual currencies, thecurrent money laundering and terrorist financing regulations fail to satisfy Australia’s international obligations,and stifle the legitimate use and development of virtual currencies in Australia.
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spelling doaj-art-eebf57d9f1ea46a38012ecc91b309b822025-08-20T03:51:18ZengBond UniversityBond Law Review1033-45052202-48242015-12-0127110.53300/001c.5635Bitcoin: Where Two Worlds CollideRuss MarshallThere are over 275 virtual currencies in existence today. One of these currencies is Bitcoin, the largest andmost recognised virtual currency in the world. With its exponential growth over recent years, Bitcoin isbringing a degree of permanence for, and dependability on virtual currencies that can no longer be ignored byregulators. While an increase in international regulatory activity over the past 12 months suggests that somegovernments understand this, Australian regulators appear reluctant to act. In addition to examining Bitcoin’soperational system in detail, this article examines the affect that Bitcoin is having on two key features of thefinancial system: (1) the money laundering and illicit finance supply system; and (2) the payment system. Bycomparing the effectiveness of the response measures enacted by Australian and international regulators inCanada, Singapore, the United States, and the United Kingdom, this article demonstrates that even thoughAustralia’s current payment system policy is capable of addressing the threats posed by virtual currencies, thecurrent money laundering and terrorist financing regulations fail to satisfy Australia’s international obligations,and stifle the legitimate use and development of virtual currencies in Australia.https://doi.org/10.53300/001c.5635
spellingShingle Russ Marshall
Bitcoin: Where Two Worlds Collide
Bond Law Review
title Bitcoin: Where Two Worlds Collide
title_full Bitcoin: Where Two Worlds Collide
title_fullStr Bitcoin: Where Two Worlds Collide
title_full_unstemmed Bitcoin: Where Two Worlds Collide
title_short Bitcoin: Where Two Worlds Collide
title_sort bitcoin where two worlds collide
url https://doi.org/10.53300/001c.5635
work_keys_str_mv AT russmarshall bitcoinwheretwoworldscollide