A Bloomberg report reveals that the U.S. Consumer Financial Protection Bureau (CFPB) will play an active role in deciding the policies related to Bitcoin and other virtual currencies, after it was prodded by a congressional regulator. The report further discloses that the Government Accountability Office (GAO), which is an investigative wing of Congress, highlighted the need of Bureau’s active participation in regulating the digital currency, through a written letter. In response, CFPB’s acting assistant director, WillianWadegery, wrote that the Bureau will increase their involvement towards the same and will engage in a set of specific issues relating to consumer protection.
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Meaningful Discussion
The letter from GAO did not specify the cases where CPFB should come into play, but rather remained generalized, underlining the security concerns mounting over the usage of virtual currencies, especially, Bitcoin. The recent instance of collapse of Mt. Gox Bitcoin exchange in Tokyo and its bankruptcy has further elevated the concerns. Further, Senator Tom Carper told to Bloomberg, that the GAO’s report from May, underscored the need and importance of participation from all sectors, be it industry, law enforcement, consumer protection agencies or relevant regulators, to come together and involve in a meaningful discussion to lay out a set of uniform rules for investors, consumers and businessmen.
Extremely Critical
Working on the legal framework for Bitcoin becomes extremely important at this point of time, when a number of people are attracted to it for its ability to provide a window for money laundering or entering into Black Market. Moreover, a separate report from the Wall Street Journal, citing Mt Gox’s CEO Mark Karpeles that there is a negative possibility of recovering the remaining lost Bitcoins further puts the need for legal enforcement in the spotlight. At the same time, the use of Bitcoins as a mode of payment is also on a rise, which implies that regulators will no longer have the convenience to adopt ‘wait and watch’ policy.
June 27, 2014 at 06:47AM
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