I question how far the Bitcoin industry can develop without government regulatory agencies getting involved. Granted I don't have a deep background in financial systems, but this seems like more than a remote possibility.
I see a parallel with Bitcoin and the financial system to Uber & Lyft with traditional taxi/limo services. In Seattle, both Uber & Lyft are being hassled by the city since they don't fall under the regulations that apply to taxis and limousines. And truth be told, I think that Uber & Lyft are going to see the regulatory matters eventually impact their operation, rather than going away.
And that's just working at a local level. Payment systems on a worldwide scale? Seems commensurately high-risk, high-reward at present, where the "high" measurement is significant.
Sure, it is regulated by FinCEN but what does that do for me? It seems FinCEN is nothing more than a part of the national security theatre than actually regulations that help me.
Technically it's not. FinCEN regulates money services businesses and they have decided that people/companies who exchange virtual currencies for USD are in the money services business.
It might sound like nitpicking but it's an important distinction.
I see a parallel with Bitcoin and the financial system to Uber & Lyft with traditional taxi/limo services. In Seattle, both Uber & Lyft are being hassled by the city since they don't fall under the regulations that apply to taxis and limousines. And truth be told, I think that Uber & Lyft are going to see the regulatory matters eventually impact their operation, rather than going away.
And that's just working at a local level. Payment systems on a worldwide scale? Seems commensurately high-risk, high-reward at present, where the "high" measurement is significant.