The internet has been a revolutionary change came as a boon to the mankind. But with the extensive scope of the internet, people have engaged themselves in illegal and unethical activities through the internet. Bitcoin is another revolutionary change that is often compared to the internet. Bitcoin was invented in the year 2009 where the earliest adopters were the Cryptographers and the cyberpunks. Later on, Bitcoin was adopted as a means of payment for the illicit trading of drugs and several other illegal activities since it is a digital form of currency. Having said that regulation of Bitcoin is very important as it is being mostly misused because of the anonymity it provides to its holders.
Bitcoin is the most widely used Cryptocurrency in the darknet markets against all illegal trades and activities due to its anonymity and untraceability. To take advantage of the Bitcoin, all one needs to do is create a Bitcoin wallet and start transacting the Cryptocurrency without coming in to the notice of the law enforcement. Bitcoin also provides the users with another feature which is that the transactions conducted within the Bitcoin network are immutable or irreversible that implies that once a transaction has been made, it cannot be charged back like the transactions through credit cards or online transfer services like the PayPal. Also, the transaction made against a particular number of Bitcoin can be traced but the purpose of transaction cannot be traced.
Most of the countries all throughout the world have taken into consideration the Bitcoin as the property or an asset of the same meaning and have permission to be used in the trade of Bitcoin. Only a small number of the countries have completely restricted Bitcoin in some way or another. The U.S Securities and Exchange Commission (SEC) along with the Commodity Futures Trading Commission (CFTC) have been discussion on the possible regulation of Bitcoin and interagency cooperation for enforcement for quite some time. Although, FinCEN (a U.S. Treasury body), has already issued guidelines for those dealing with Cryptocurrency exchange.