Are AML, KYC and Other Regulations Really Important for Bitcoin?

Is it really necessary to implement AML and KYC regulations for Bitcoin and other cryptocurrencies? Read more…
There has been some debate on the need of blanket Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations for Bitcoin and other digital currencies. Even though it is a long-standing debate, it was further fueled by a recent blog post by Tim Swanson, the Director of Market Research at R3CEV, where he calls for such regulations by giving examples of few frauds and Ponzi schemes in the cryptocurrency sector.
Ponzi Schemes and Frauds Were There Even before Bitcoin Greed is an inherent quality of human beings, and some of them fulfill it at the cost of others’ hard-earned assets. Ponzi schemes and other investment frauds have been around for a long time, even before cryptocurrencies came into existence. For starters, Ponzi scheme is named after Charles Ponzi who ran a successful investment fraud that cheated people of millions of dollars by promising them great returns on investments in International Reply Coupons (kind of redeemable postage stamps), which was issued by the governments running their respective postal services.

This post was published at NewsBTC on June 29, 2016.