Skip to main content
menu close

Conference Training and Weekly Session 14 - Cryptocurrency Regulation

Secretary Sun, 02/11/2018 - 15:57

Cryptocurrency Regulation

Conference Training Session - Wednesday 6PM, Laidlaw Room 1

In the lead up to our conference, we are holding a training session so that you know exactly what to expect and have the skills to enjoy your experience. Join us to learn how to write a great resolution during a General Assembly session and plan a smashing assassination attempt during a Crisis session. We will cover things like:

  • Formalities and format of debate
  • How to prepare for the debate
  • Rules of the debate
  • Resolution writing
  • Voting on the resolution

 

Study Guide

With the recent cryptocurrency price crashes and terrorism-linked scandals, whereby the terrorist group Daesh used bitcoins to fund its “reign of terror”, it is no surprise that EU commission have released plans for cryptocurrency regulation known as the “4AMLD”. Human and drug trafficking using the bitcoin system on the Silk Road have similarly plagued the system in the US, leading regulators to pursue legal action.

Currently, the most common cryptocurrency is known as Bitcoin (BTC), however there are thousands of other currencies such as Ethereum (ETH). Bitcoins themselves can be purchased, sold, and exchanged for other currencies at specialised “currency exchanges”. Because the backbone of Bitcoin uses a decentralised internet-based system, this allows for fast, secure and more importantly borderless transactions. These “coins” are entirely virtual, therefore, in order to prove ownership of a bitcoin, a key is required, this grants the key-holder access to a digital wallet, which itself holds the bitcoins. Because this is an entirely decentralised process, this permits complete anonymity.

Whilst privacy advocates have touted bitcoin as a saviour from centralised control such as banks and governments, this non-centralised system means that there are is no means of returning currency if a transaction is said to be fraudulent. Moreover, it is nigh impossible for governments to track to and from who transactions are occurring, and even if this was possible, it would not be possible for them to reverse the transaction; particularly troubling if transactions are used for unethical purposes such as terrorism. Nevertheless, the growth of bitcoins has been exponential, leading the Russian leader Vladimir Putin to state [bitcoin creates] “opportunities to launder funds acquired through criminal activities, tax evasion, even terrorism financing, as well as the spread of fraud schemes.” Hence, the Bank of Russia is attempting to block all Bitcoin exchanges in the country, which is on the heels of China’s exchange ban and Algeria’s, Ecuador’s and Bolivia’s complete ban on bitcoins. Conversely however, the United Nations has embraced the cryptocurrency concept in an effort to create a system, such that even in the event in a national currency collapse, refugees would be able to pay for food and water.