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9/18/13 - The Way Forward for Digital Currencies

Digital currencies have reached a critical — and delicate — moment in their evolution. U.S. regulators and law enforcement are increasingly focused on the potential use of digital currencies to finance criminal activities, including terrorism. Regulators outside of the U.S. are monitoring the digital-currency market and are likely to devote greater resources to its oversight if its growth continues.

Responding to regulators’ concerns will require digital-currency firms to make major changes to current practices and technology. The changes will likely alienate some users, but increasingly severe enforcement actions — which are almost certain without further prompt action by the digital-currency industry — is an even greater threat to the industry’s viability. Please click below to a read a Sightlines InFocus by Adam Shapiro that explains the risks that digital-currency firms must address, and offers practical steps to mitigate those risks.

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