There are no Bitcoins, Only Bit Payers: Law, Policy and Socio-Economics of Virtual Currencies

This paper explores the legal character of the Bitcoin and other emerging "virtual currencies," and the legal and policy implications of Bitcoin trading. It observes that these “cryptocurrencies” exhibit different legal characteristics depending on the context in which they are examined ? whether transactional law, tax law, or criminal law, for example. The paper argues that the appropriate legal analogue for classifying Bitcoins should be investment and commercial notes, since this characterisation would lead to the application of an appropriate and effective body of transactional and regulatory law to Bitcoins.