International Conference on Financial Cryptography and Data Security

FC 2015: Financial Cryptography and Data Security pp 94-111 | Cite as

Cryptographic Currencies from a Tech-Policy Perspective: Policy Issues and Technical Directions

  • Emily McReynolds
  • Adam Lerner
  • Will Scott
  • Franziska Roesner
  • Tadayoshi Kohno
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 8976)

Abstract

We study legal and policy issues surrounding crypto currencies, such as Bitcoin, and how those issues interact with technical design options. With an interdisciplinary team, we consider in depth a variety of issues surrounding law, policy, and crypto currencies—such as the physical location where a crypto currency’s value exists for jurisdictional and other purposes, the regulation of anonymous or pseudonymous currencies, and challenges as virtual currency protocols and laws evolve. We reflect on how different technical directions may interact with the relevant laws and policies, raising key issues for both policy experts and technologists.

References

  1. 1.
    U.S. Constitution, Article I, Section 8Google Scholar
  2. 2.
    U.S. Title 18, Section 1030 (Computer Fraud and Abuse Act)Google Scholar
  3. 3.
    Securities and Exchange Commission vs. Trendon T. Shavers and Bitcoin Savings and Trust, July 2013. http://www.sec.gov/litigation/complaints/2013/comp-pr2013-132.pdf
  4. 4.
    Seizure Warrant for Mutum Sigillum, a subsidiary of Mt. Gox , May 2013. http://cdn.arstechnica.net/wp-content/uploads/2013/05/Mt-Gox-Dwolla-Warrant-5-14-13.pdf
  5. 5.
    United States vs. Ross William Ulbricht, October 2013. http://www.popehat.com/wp-content/uploads/2013/10/UlbrichtCriminalComplaint1.pdf
  6. 6.
    United States vs. Robert M. Faeilla and Charlie Shrem, January 2014. http://www.justice.gov/usao/nys/pressreleases/January14/SchremFaiellaChargesPR/Faiella
  7. 7.
    Bangkok Pundit: Has Bitcoin really been banned in Thailand?, July 2013. http://asiancorrespondent.com/111332/has-bitcoin-been-banned-from-thailand/
  8. 8.
    Ben-Sasson, E., Chiesa, A., Garman, C., Green, M., Miers, I., Tromer, E., Virza, M.: Zerocash: decentralized anonymous payments from Bitcoin. In: IEEE Symposium on Security and Privacy (2014)Google Scholar
  9. 9.
    Brito, J., Castillo, A.: Bitcoin: a primer for policymakers. Mercatus Center, George Mason University, August 2013. http://mercatus.org/publication/bitcoin-primer-policymakers
  10. 10.
    Bryans, D.: Bitcoin and money laundering: mining for an effective solution. Indiana Law J. 89(1), 441–472 (2014)Google Scholar
  11. 11.
    Bureau of consumer protection. In Brief: The Financial Privacy Requirements of the Gramm-Leach-Bliley Act, July 2002. http://www.business.ftc.gov/documents/bus53-brief-financial-privacy-requirements-gramm-leach-bliley-act
  12. 12.
    Chaum, D., Fiat, A., Naor, M.: Untraceable electronic cash. In: Goldwasser, S. (ed.) CRYPTO 1988. LNCS, vol. 403, pp. 319–327. Springer, Heidelberg (1990) CrossRefGoogle Scholar
  13. 13.
    Chaum, D.: Blind signatures for untraceable payments. In: Advances in Cryptology, CRYPTO 1982 (1982)Google Scholar
  14. 14.
    Consumer Financial Protection Bureau: risks to consumers posed by virtual currencies, August 2014. http://files.consumerfinance.gov/f/201408_cfpb_consumer-advisory_virtual-currencies.pdf
  15. 15.
    CyberCrime Law: Cybercrime laws from around the world. http://www.cybercrimelaw.net/Cybercrimelaws.html
  16. 16.
  17. 17.
    Dratel, J.L.: Memorandum of Law in Support of Defendant Ross Ulbricht’s Pre-Trial Motions Challenging the Face of the Indictment, April 2014. http://www.wired.com/wp-content/uploads/2014/04/Ulbricht3.pdf
  18. 18.
    European Central Bank: Virtual Currency Schemes, October 2012. http://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf
  19. 19.
    Eyal, I., Sirer, E.G.: Majority is not enough: Bitcoin mining is vulnerable. In: Financial Cryptography and Data Security (2013)Google Scholar
  20. 20.
    Fairfield, J.: Smart Contracts, Bitcoin Bots, and Consumer Protection. Washington & Lee University Law Review Online, September 2014. http://lawreview.journals.wlu.io/smart-contracts-bitcoin-bots-and-consumer-protection
  21. 21.
    Federal Election Commission: FEC Memorandum, May 2014. http://www.fec.gov/agenda/2014/documents/mtgdoc_14-24-b.pdf
  22. 22.
    Financial Crimes Enforcement Network: Guidance FIN-2013-G001: Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies, March 2013Google Scholar
  23. 23.
    Greenberg, A.: Forrest denial of defense motion in silk road case, July 2014. http://www.scribd.com/doc/233234104/Forrest-Denial-of-Defense-Motion-in-Silk-Road-Case
  24. 24.
    Gruwell, L.: Wikimedia foundation now accepts Bitcoin, July 2014. http://blog.wikimedia.org/2014/07/30/wikimedia-foundation-now-accepts-bitcoin/
  25. 25.
    Hill, K.: 21 Things I Learned About Bitcoin Living On It A Second Time, May 2014. http://www.forbes.com/sites/kashmirhill/2014/05/15/21-things-i-learned-about-bitcoin-living-on-it-a-second-time
  26. 26.
    Internal Revenue Service. http://www.irs.gov
  27. 27.
    Internal Revenue Service: Notice 2014–21, March 2014.http://www.irs.gov/pub/irs-drop/n-14-21.pdf
  28. 28.
    Internal Revenue Service: Tax Consequences of Virtual World Transactions, August 2014. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Tax-Consequences-of-Virtual-World-Transactions
  29. 29.
    Marini, P., Marc, F.: La Regulation a L’epreuve de L’innovation: Les Pouvoirs Publics Face au Developpement des Monnaies Virtuelles. French Senate, July 2014. http://www.bitcoin.fr/public/divers/docs/Rapport_de_la_commission_des_finance_du_Senat.pdf
  30. 30.
    Meiklejohn, S., Pomarole, M., Jordan, G., Levchenko, K., McCoy, D., Voelker, G.M., Savage, S.: A fistful of bitcoins: characterizing payments among men with no names. In: Internet Measurement Conference (2013)Google Scholar
  31. 31.
    Miers, I., Garman, C., Green, M., Rubin, A.D.: Zerocoin: anonymous distributed e-cash from Bitcoin. In: IEEE Symposium on Security and Privacy (2013)Google Scholar
  32. 32.
    Nakamoto, S.: Bitcoin: a peer-to-peer electronic cash system (2008). https://bitcoin.org/bitcoin.pdf
  33. 33.
    New York State Department of Financial Services: BitLicense Framework: Title 23. Department of Financial Services Chapter I. Regulations of the Superintendent of Financial Services Part 200. Virtual Currencies, Jul 2014. http://www.dfs.ny.gov/about/press2014/pr1407171-vc.pdf
  34. 34.
    Overstock.com: Bitcoin on overstock.com (2014). http://www.overstock.com/bitcoin
  35. 35.
    Shirriff, K.: Hidden surprises in the Bitcoin blockchain and how they are stored: Nelson Mandela, Wikileaks, photos, and Python software, February 2014. http://www.righto.com/2014/02/ascii-bernanke-wikileaks-photographs.html
  36. 36.
    Stockman, S.: Stockman plans to introduce the “virtual currency tax reform act”, April 2014. http://stockman.house.gov/media-center/press-releases/stockman-plans-to-introduce-the-virtual-currency-tax-reform-act
  37. 37.
    Tavakoli, Y., Yohannan, D.: Personal Jurisdiction in Cyberspace: Where Does It Begin, and Where Does It End? Intellectual Property and Technology Law Journal, January 2011. http://www.kelleydrye.com/publications/articles/1431.pdf, http://www.kelleydrye.com/publications/articles/1431/_res/id=Files/index=0/Personal%20Jurisdiction%20in%20Cyberspace_IP%26Tech%20Law%20Journal_January2011.pdf
  38. 38.
    The Law Library of Congress, Global Legal Research Directorate Staff: Regulation of Bitcoin in Selected Jurisdictions, January 2014Google Scholar
  39. 39.
    The People’s Bank of China and Five Associated Ministries: Prevention of Risks Associated with Bitcoin, December 2013. https://vip.btcchina.com/page/bocnotice2013
  40. 40.
  41. 41.
    U.S. Department of the Treasury: report of international transportation of currency and monetary instruments. http://www.fincen.gov/forms/files/fin105_cmir.pdf
  42. 42.
    U.S. Securities and Exchange Commission: investor alert: Bitcoin and other virtual currency-related investments, May 2014). http://investor.gov/news-alerts/investor-alerts/investor-alert-bitcoin-other-virtual-currency-related-investments

Copyright information

© International Financial Cryptography Association 2015

Authors and Affiliations

  • Emily McReynolds
    • 1
  • Adam Lerner
    • 1
  • Will Scott
    • 1
  • Franziska Roesner
    • 1
  • Tadayoshi Kohno
    • 1
  1. 1.Tech Policy Lab and Security and Privacy Research LabUniversity of WashingtonSeattleUSA

Personalised recommendations