Imagine, if you will, two traders meeting in secret, reducing any event of hacks. They are on a path only available by a secret route: it’s called the Silk Road. While there, the traders negotiate deals that would be illegal under the laws of their homeland.
They exchange in secret, eluding authorities by dealing in a private currency not issued by their mother countries. Then they part ways; having bartered for dangerous narcotics and weaponry. This is neither the stuff of legend nor history.

Despite much travail, the bizarre world of Bitcoin has prevailed through currency exchange mega hacks, burst bubbles, and an army of Trojans. Litigators, investigators, and regulators need to begin preparing themselves for how best to manage a corner of the internet that has eluded regulation and has great potential for crime, particularly when there is no one law that neatly covers Bitcoin within its purview.

Due to the peer-to-peer nature of the currency and the technical aptitude of many of its adherents, searching for an option that dismantles Bitcoin in one fell swoop is futile. Instead, regulators must seek a balance between oversight and cooperation from the major
institutions, namely the exchanges.

Through the use of the Money Laundering Act and the Exchange Act, the government can achieve that balance. What will be left is a currency that is stronger and safer for use by the everyday consumer, but also easier to navigate in order to rout out those who would use it to commit illegal acts.