Regulating Bitcoin
Full article140 words · extracted from schneier.com · click to collapse
Ross Anderson has a new paper on cryptocurrency exchanges. From his blog:
Bitcoin Redux explains what’s going wrong in the world of cryptocurrencies. The bitcoin exchanges are developing into a shadow banking system, which do not give their customers actual bitcoin but rather display a “balance” and allow them to transact with others. However if Alice sends Bob a bitcoin, and they’re both customers of the same exchange, it just adjusts their balances rather than doing anything on the blockchain. This is an e-money service, according to European law, but is the law enforced? Not where it matters. We’ve been looking at the details.
The paper.
Tags: academic papers, banking, bitcoin, cryptocurrency, economics of security
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Text extracted automatically; images, tables and formatting may be missing. Original: https://www.schneier.com/blog/archives/2018/06/regulating_bitc.html