In the past decade, we have seen the creation and massive
expansion of what is commonly referred to as
"cryptocurrency". Cryptocurrencies are essentially
digital "currencies" that operate through blockchain
technology as a medium of exchange and do so independently from
centralized banks. Cryptocurrencies are regulated by encryption
techniques that control the number of "units" and use
their own networks of users to verify transfers between parties.
The use of cryptocurrencies has become widespread, with over 1,600
different types existing worldwide. However, the regulation of
cryptocurrencies has not kept up with this growth and questions now
arise as to how cryptocurrencies should be treated under the law.
The following discussion identifies several relevant legal issues
currently faced by the holders, traders, and issuers of
cryptocurrencies.
