I just came across this article and I have to admit that I tend to agree with PayPal on this. Companies that are involved in financial transmissions should be definitely regulated and in compliance with anti-money laundering and anti-terrorism laws.
Bitcoin transactions between individual users shouldn’t be regulated — but businesses offering services based on Bitcoin and other digital currencies should be regulated in a similar manner to other payment services, PayPal has argued.
In a submission (PDF) to the Senate inquiry examining the regulation of digital currencies, including Bitcoin, in Australia, the company argued that it is “important to draw a distinction between digital currencies, versus the companies that trade or facilitate transactions in digital currencies”.
The submission states:
While the currency itself should not be regulated, and transactions by individual users without the assistance of intermediaries should not be regulated, companies that provide a financial service for digital currency transmission, for issuance or sale of digital currency, or for exchange with other currencies such as the Australian Dollar, should be regulated in a manner similar to the existing regulations that apply to other payment services.
Totally agree. This would not only aid towards the broader mainstream looking differently at cryptocurrencies or those that offer financial services but also protect us existing users from the everlasting dramas with crypto-exchanges and other merchants.(imho)