Government Seeks to Regulate Bitcoins
Bitcoins, a growing name in digital currencies, is now under scrutiny as the U.S. government looks to put regulations on its transactions.
Bitcoins exist solely on the Internet and can be exchanged for real money based on their current market rate. Many people are switching to Bitcoins because they cannot be taxed or monitored by the government.
That may all be changing in the near future.
The Senate Homeland Security and Government Affairs Committee has already issued letters to the Department of Treasury and other government agencies requesting details on how the use of virtual currencies is overseen.
In March, the Financial Crimes Enforcement Network from the Treasury Department put Bitcoin businesses under the same set of laws as other money service businesses. This did not stop Bitcoins from thriving.
“Bitcoins put power in the hands of people who use it. It is going to do to money what e-mail did to written communication,” said Alan Reiner, a developer for Bitcoin’s software Armory. “Bitcoin cannot survive as a mainstream concept unless it has governments’ approval,”