Regulating Bitcoin - On What Grounds?

This paper assesses costs and benefits of regulating Bitcoin. A review the main justifications for it shows that scope efficient regulation is limited. Private governance structures fee-based services have already begun addressing many known problems. Furthermore, since a would discourage use, costs—in terms technological gains forgone—are potentially high. Nonetheless, there regulation, to ensure one has recourse in event theft, as long following are addressed: 1) provide clear regulatory framework; 2) supervise transactions dissuade crime, without compromising medium; 3) regulate exchanges, rather than users; 4) encourage progress by committing an environment permissionless innovation.