Article Review: Conceptual Framework for the Regulation of Cryptocurrencies


Article: A Conceptual Framework for the Regulation of Cryptocurrencies.

Author: Omri Y. Marion

Journal: University of Chicago Law Review Dialogue, Vol. 81, 2015

Link: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2509857

Reviewer: Mohammad Rubaiyat Rahman

… …

The paper propounds normative regulation framework to curb the usage of cryptocurrencies in criminal activities. A reader can conclude that the aim of proposed regulation framework is to baffle the usage of crypto currency in illegal activities. Anonymity and decentralization are two salient features of crypto currency. To tackle the extent of criminal activity, the regulation framework rejects increased anonymity and at the same time allows decentralization.

Anonymity is a unique feature of cryptocurrencies. The author successfully contends that this feature may render the proposed framework complex and costly effort. Hence, the framework’s rejection of anonymity renders it a practicable one. However, such regulation may also put law-abiding individuals into a tangle of complexity. This eventually dilute the vista of cryptocurrency transaction and restrain cryptocurrencies from exhibiting its positive potentials.

The feasibility of implementing ‘zero knowledge protocol’ method may be mulled for making the framework more practicable, less anonymous and at the same time much popular among law abiding individuals. Such method would check the frequent use of cryptocurrencies in illegal activities which is also the salient aim of the proposed framework regulation.

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