Important step forward for increasingly popular cyber currency
Proponents of the dominant cyber currency Bitcoin, used by a growing number of online gambling operators as a legitimate and anonymous currency, were encouraged this week by the news that recent amendments to the Japanese banking regulations recognise the cyber currency as ‘property of value’.
Whilst that stops short of full recognition, it remains an important step forward for the currency, and one that will strengthen its reputation on international markets and transactions.
The downside of such mainstream recognition is that the user anonymity which is one of Bitcoin’s big attractions will be diluted; the Virtual Currency Act imposes responsibilities on crypto currency exchanges that require them to strictly enforce Know Your Customer (KYC) requirements including proof of personal identity.
On the upside, exchanges will have to be more transparent and segregate operational funds from user deposits.