Bitcoin: The First Self-Regulating Currency?

Abstract

This article provides an examination of regulation theory as applied to Bitcoin. Through an examination of the parallels with Ogus’ model for self-regulation, it is demonstrated that several unique features inherent to cryptocurrencies offer the benefits of regulatory oversight without the drawbacks. The article also provides a broader socio-regulatory analysis of Bitcoin in an attempt to better understand the benefits of competitive self-regulation for platform users. Finally, this article examines whether cryptocurrencies should be regulated by way of traditional State-based models and, if so, which of these approaches (if any) ought to be used to regulate the platform.