Deloitte says it's too early to regulate Bitcoin

The regulatory issues of Bitcoin have been discussed in detail in a report released by Deloitte 's Regulatory Strategy Center titled "Bitcoin Faces a Choice".

The report briefly introduces virtual currencies and blockchain technology, then quickly moves on to the question the report addresses: “ How will Bitcoin be regulated? ”

Bitcoin's decision also highlights that cryptocurrencies have attracted scrutiny more quickly and more widely than most other emerging technologies in history.

It also lists the problems faced by Bitcoin users so far, such as the theft of Bitcoins from digital wallets, the use of the currency to finance illegal activities, the failure of Mt. Gox , etc.

The report then goes on to provide three reasons why policymakers, i.e. regulators, must take their time and give Bitcoin some time to develop. The reasons listed are:

Compared to traditional monetary systems and trading platforms, Bitcoin is small

Other key innovations have more time to develop before becoming regulated

Bitcoin’s most valuable and important use may not yet be discovered

The Deloitte report further states that because Bitcoin was designed as a " truly open source " digital currency and public ledger that is not controlled by any government or company, Bitcoin and blockchain could, at least on the surface, contribute to the continued development of Internet e-commerce.

However, the report says this is a pretty bold move (Bitcoin adoption and regulation) and because it changes something so important and core to the financial world, we need to give it some time.

In the end, the report notes that the future remains unclear, similar to a chicken and egg situation.