Appropriate Regulatory Oversight for Digital Currency as a Commodity
- Pp. 63-64 (2)Jeffrey H. Matsuura
Virtual currencies are bought and sold in digital markets in the same manner as other goods, subject to traditional laws governing contracts, commercial sales, and consumer protection. Those currencies are also used as the basis for financial products including future contracts and other financial derivatives. When digital currency is traded as a financial product and when digital currency platforms are used to create and operate financial markets, the currency and its platforms are subject to the oversight of financial regulators. This dual nature of legal compliance associated with virtual currency and its platforms is essential. Under these circumstances, digital currency systems and activities face different legal compliance challenges depending on their specific functions. Understanding this environment is essential for effective legal compliance in the virtual currency community.