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Businesses should not be afraid to work with cryptocurrency

Cryptocurrency is virtual money which is not backed by fiat currency and has a decentralised system. Among cryptocurrencies nowadays, Bitcoin (technology, network) is the most popular, which shows constant growth of interest from the business side.
More and more businesses are trying to operate with bitcoins (single unit, the so-called “money”), invest in this cryptocurrency or offer customers possibilities to make payments in bitcoins. However, there are still some concerns in the business community that bitcoin is difficult to deal with as being anonymous makes it non-compliant with regulations or that bitcoin being a virtual currency is vulnerable to cyber-attacks. The third concern is that bitcoins have volatile character and their value is changing dramatically.

Even now, without any special EU bitcoin regulation, businesses are operating with bitcoins. You can exchange bitcoins, can purchase tickets and products, pay bills and gamble with bitcoins. The business sector is always ahead of regulation and it usually works like this: first something new is happening, then regulators try to set up some rules and safeguards of that something “new” when they see that impact is visible. The impact of bitcoin is difficult not to see nowadays. A lot of investments have been made in the mining equipment; many stakeholders are working on promoting bitcoins among people; a lot of discussions about regulation are happening on the governmental level. Thus, the era of cryptocurrency is here.
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Author:
NIKOLAY DEMCHUK
Associate, Tallinn
Direct: (+372) 66 76 452
Mobile: (+372) 57 80 77 53
nd@njordlaw.ee

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