U.S. government announces regulation of virtual currency markets

During the last several years, there has been a slow-but-steady growth in the interest in so-called virtual currencies. By far, the most popular form of online money as of this year is the Bitcoin. 

According to the official website of the eponymous company behind the currency, a Bitcoin offers investors and everyday individuals a number of benefits. These include a sophisticated cryptographic network that protects the identities and actions of those who utilize it for a transaction. Similarly, the business guarantees a stable transfer of funds, with verification possible within an hour. Most importantly, the amount of Bitcoins in circulation is tightly monitored to prevent fraud, with an anticipated 21 million units in use.

While a person might argue that such a system is advantageous for these reasons, the U.S. government is purportedly taking steps to regulate the Bitcoin market to prevent the company's safeguarded network from becoming a breeding ground for online criminal activity. The Wall Street Journal reported on March 21 that the Treasury Department's anti-laundering division has launched an investigation into Bitcoin, while simultaneously issuing a number of new regulations on this industry. For example, any transaction in the virtual currency of more than $10,000 will be noted and monitored by federal officials.

A spokesman from Bitcoin suggested that the business was more than happy to help the anti-laundering effort.

"I think it's inevitable that just like you have U.S. dollars used by thieves and criminals, it's sadly inevitable you will have criminals use a virtual currency. We want to work with authorities," Jeff Garzik, a developer at Bitcoin, told the source.

These regulations threaten the free-market principle that Bitcoin embodies, and as such investors may want to note this incursion into an industry that is becoming more and more popular. For more information on these and other topics related to wealth preservation, visit GreatWealthStrategies.com today.