Bitcoin, a form of digital currency, has been around since the year 2009, but many people were unfamiliar with it until recently when it started to make headline news. The most recent news piece about bitcoin comes out of Russia. Interfax, a Russian news outlet, has announced that Russian authorities are going to stop all efforts that went into prosecuting bitcoin users. Two full years went into this investigation by the authorities. The digital money users and suppliers may have faced fines up to $25,000, or they would have been forced into working in correctional forms of labor if the criminal proceedings went through.

Bitcoin has a reputation of either being good or evil. It is unlike any other form of currency that has been used before. It is completely digital, meaning that it is used and redeemed only in the digital world. Individuals who use bitcoin are mostly anonymous as they are only known by the number assigned to their bitcoin wallet where the digital money is stored. The bitcoin wallet is kind of like a bank without the fees. At this point in time regulations appear to not be in place for this type of currency. Many countries are trying to create proposals to help in the regulation of it.

Currency that is not regulated by any governing body has it’s up’s and downs. Without a governing body merchandise can be purchased internationally much easier, and they can be purchased cheaper. The downside to not having anyone watch over this money is that it makes it easier to be hacked, stolen, or lost. It is not backed by any bank, and this means that the FDIC will not be there to help recover the money once it is gone. Bitfinex, one of the largest bitcoin exchange competitors, felt the sting of what happens when a hacker strikes. The company took a $60 million dollar dive when a high-profile hacker attacked their systems early in August of 2016. Scared traders pulled their digital, or cryptocurrency, from the exchange out of fear. The company is just now starting to recover from the massive blow, but it may never be on the same level that it once was. Unfortunately, the company has stated that they have yet to identify just how they were hacked.

Crime is one of the largest reasons that countries around the globe want regulations placed on bitcoin. The meeting that took place in Russia tried to address this issue as it discussed the fate of bitcoin users that were under investigation. One idea that Alexei Mopiseev, a deputy finance minister, suggested was to try and regulate the digital currency as foreign currency. Those who were at the meeting did agree that the digital currency should be monitored and analyzed for criminal risk.

The criminal aspect of having anonymous virtual currency may be a legitimate reason for governments around the globe to step in and regulate it. In 2013 an online black market ring was shut down by the FBI. The largest buyers from the illegal black market used untraceable money such as bitcoin for purchases. The International Center for Missing and Exploited Children has voiced concerns over bitcoin as well. They believe the anonymity offered to bitcoin users has created a world where predators have easier access to buyers and sellers of child pornography and even in sex trafficking. Many of those who are in the world of criminal investigation are finding it difficult to track the criminals that use this type of currency.

Regardless of the big hack that one large bitcoin exchange took early in August the price for the bitcoin appears to be increasing. It appears that the loyalty of the bitcoin users who buy, sell, and trade the digital currency is unbending. The Russian tax agency appears to be just as unbending as new laws are being created to address the use of digital currency. Currently the Russian tax agency is stressing that the citizens of the country need to report the buying or the selling of any digital currency. The tax offices in Russia are not the first governing body in the world to step up and try to regulate digital currency. In 2015 law makers in New York implemented what was called a BitLicense. This license was a way for the government to regulate the virtual money, but many businesses that use bitcoin closed or moved their operations out of New York.