Without Unified, Federal Regulations for Digital Currencies, the U.S. Risks Falling Behind

The divided regulatory policies and frameworks on digital currencies, including Bitcoin, in the United States have created an impractical ecosystem for startups to operate in.
The country’s state-by-state regulations for money transmission licensing has led to an unclear regulatory framework for digital currencies, with some states, including North Carolina, New Jersey and California, establishing regulations in favor of digital currency startups and businesses, while others, such as New York and Connecticut, require startups to obtain expensive licenses to operate as legal entities.
This rules-based approach from government agencies has made it virtually impossible for digital currency startups to be compliant with each state’s regulations, resulting in the termination of services in some states.

This post was published at Nasdaq on August 01, 2016.