Commonwealth member governments begin to regulate Bitcoin?

     At the Commonwealth Virtual Currency Working Group meeting held in London, participants agreed that it is necessary for governments to start regulating Bitcoin. Most countries in the group still have minimal regulation of Bitcoin, but industry insiders believe that Bitcoin has a strong momentum of growth in these countries.

     The task force, which includes members from banks, academia, virtual currency operators, users and law enforcement agencies, is forcing governments to reconsider their lack of legislative oversight of the cryptocurrency industry.

Bitcoin Regulatory Framework

     “Member States should consider the scope of their existing legal frameworks to determine the application of virtual currencies and, where appropriate, they should consider amending or enacting new laws to regulate virtual currencies,” the working group said at the end of a three-day meeting.

     The panel also reached another conclusion: virtual currencies have potential and are conducive to the development of member states, but the use of virtual currencies has benefits and risks. This requires raising awareness and education, and providing funding for training for law enforcement agencies, prosecutors, judges and regulators, and the financial sector also needs training. Member States should consider developing and improving law enforcement capabilities, especially in digital forensics and analysis. The legal framework should address risks and loopholes, maintain technology neutrality, and avoid stifling innovation.

     The working group will prepare a report on the prevalence and impact of virtual currencies. The next meeting will be held early next year, and it plans to draft a regulatory framework for Bitcoin.