Governments are still adamant in regulating digital currencies like Bitcoin despite the fact that these currencies have been used for a long time now to buy goods and services online. In addition, many people are going for bitcoin investment because they are being adopted by online based companies. Regulation of digital currencies is important for various reasons. For example, there have been very high-profile bitcoin thefts recently, include an attack on the Czech exchange that emptied over 4000 digital wallets that belonged to customers. In addition, an eighteen-year-old in Australia who owned a Bitcoin bank had more than 4000 bitcoins stolen most of which belonged to users on his website.
Basically in any financial industry, the strongest argument that is always in favor of proper regulation is the need to protect consumers from losing their money, something that bitcoin as well as other virtual currencies currently lack. While people continue to invest in bitcoin, financial regulators in some countries continue to see virtual currencies as less of miraculous technologies than a modern headache for the law enforcement. However, the application of the existing laws to virtual currencies is enough to assuage the concerns most financial regulators have. One thing that is, however, evident is that exploitation through malicious activities is a problem that is still faced by all forms of financial services.
This also means that exploitations are not unique to digital currency systems. Prospects of Bitcoin and bitcoin investing, however, suggest that a convertible digital currency that has an appropriate know-your-customer and anti-money-laundering controls is necessary to protect customers. Such a control can also safeguard its arrangement from all forms of exploitation by terrorists and criminals, the same way other businesses that offer moneyservices could. Even though the concern for regulating Bitcoin and other virtual systems is that it will disrupt financial and banking systems, regulating it is veryimportant to prevent exploitations. click here to get more information bitcoin generator.