Supervision of Community Cryptocurrency -Part 4

Non-sovereign legal tender needs to be regulated.

Cryptocurrencies are taking action to develop the institutional structure to follow, but it does not mean that they will achieve inevitable success. Ironically, the more cryptocurrencies do in institutionalization and stability, the smaller the scope of the current regulatory regime will be. Bitcoin is actually more like US dollars used to buy tickets for trade fairs rather than tickets themselves. Our regulatory system only works in the sandbox of the fair. It regulates the sale of tickets as securities, as long as they are linked to the efforts of the promoter (fair operator) or a third party and it regulates fair tickets as commodities, as long as they can be exchanged with commodities of the same quality and value at the fair.

However, where are the dollars used to buy tickets for the fair? There is a big loophole in the supervision system. We assume that the issuance of currency is supervised by the sovereign state behind it. What if it is issued by a company or other autonomous agencies? Currency issued by non-foreign communities should not be ignored by our regulatory system. In fact, what should be emphasized is that the non-sovereign group issuing cryptocurrency may be a for-profit company or an online self-defined group such as Bitcoin.