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16 Trinity C.L. Rev. 67 (2013)
Halting a Shift in the Paradigm: The Need for Bitcoin Regulation

handle is hein.journals/trinclr16 and id is 67 raw text is: HALTING A SHIFT IN THE PARADIGM: THE NEED FOR BITCOIN REGULATION PETER TWOMEY* Bitcoin is an Internet currency first established in 2009.' It is anonymous, completely decentralised and its continued existence relies upon peer-to- peer networking and a dedicated base of online 'miners'.2 Bitcoin is money without a governing body. Unlike typical currencies such as the US dollar and the Euro, as well as other online currencies such as the recently axed Facebook Credits, Bitcoin lacks a centre of control, a legal entity to be held liable for instances of criminal action.3 In addition to Bitcoin's decentralised nature, transactions between Bitcoin users are almost entirely anonymous. There is no requirement for a Bitcoin user to enter their name, address, or any other details that might later be used to identify them.4 A randomly generated code used to denote the identity of a user is all that remains to confirm that a transaction did indeed take place and users can use a different code for every transaction they wish to enter into.' This makes Bitcoin a very potent weapon in the wrong hands, and this article wishes to argue that the ease at which Bitcoin can be used to further illegal activity, added to the minimal benefits that Bitcoin offers, means that Bitcoin is a dangerous threat to the Western world. LLB candidate, Trinity College, Dublin. The author wishes to acknowledge the support of Lawrence Muir and Christopher M Bruner, Professors at Washington and Lee School of Law, and David Byrne, Senior Editor at Trinity College Law Review, in undertaking this research. All errors or omissions remain the author's own. 1Adrianne Jeffries, Bit O'Money: Who's Behind the Bitcoin Bubble? <http://observer.com/2011/06/bit-omoney-whos-behind-the-bitcoin-bubble/> (visited 10 November 2012). 2 See <http://bitcoin.org/about.html> (visited 10 November 2012). 3 Emil Protalinski, Scam: Get a Free 5000 Facebook Credits totally FREE! <http://www.zdnet.com/blog/facebook/scam-get-a-free-5000-facebook-credits-totally- free/12557> (visited 10 November 2012). 4 Kim Zetter, FBI Fears Bitcoin's Popularity With Criminals <http://arstechnica.com/uncategorised/2012/05/fbi-fears-bitcoins-popularity-with-criminals/> (visited 10 November 2012). s James Ball, Bitcoins. What Are They, and How Do They Work? <http://www.guardian.co.uk/technology/2011 /jun/22/bitcoins-how-do-they-work> (visited 10 November 2012). © 2013 Peter Twomey and Dublin University Law Society

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