Document Type

Article

Publication Date

2016

Abstract

Part I of this article seeks to explain in largely non-technical terms the design of the Bitcoin network. Part II explains the guidance and administrative rulings provided by the United States Department of the Treasury's Financial Crimes Enforcement Network in relation to the issues in the Espinoza case. Additionally, Part II surveys different approaches taken by state legislatures and regulators in seeking to address decentralized virtual currencies, including bitcoin. Careful attention is paid to how the terms "monetary value" and "virtual currency" are defined, and how those definitions have been interpreted. Part II further explores the differences in the way the respective laws and guidelines treat different members of the Bitcoin ecosystem. Part III analyzes the Espinoza case, taking a critical look at the reasoning behind the dismissal of the criminal information, and suggests that the court's holdings are analytically unsound. Finally, we argue that the Espinoza case must not be allowed to stand and needs to be reversed on appeal.

Source Publication

The Journal of International Business & Law

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