OLR Report 2014-R-0290 describes the use of bitcoins as virtual currency, the laws that govern it, and other states' attempts to regulate it.
“Bitcoin” is a form of virtual or digital currency, that allows financial transactions to be conducted on a network using computer codes. It is a form of exchange that operates like a currency but does not have all the attributes of real currency.
There are no federal or state laws that specifically govern bitcoins. However, many existing laws apply to certain virtual currency activities.
Two states, California and New York, have attempted to regulate the use of virtual currencies. The regulation of virtual currencies has implications for many areas of law, including financial crimes, taxation, labor, campaign finance, and cyber security.
Click here to read the full report.
