Bitcoin has been in the spotlight in social media and broadcasted media. This is why there are people who are starting to think that Bitcoin should be regulated. If it is regulated, it could really hurt the popularity of the coin. It does not mean that regulations are bad but it is because of the way that the coin will be regulated.

The virtual currency has been attracting the attention of regulators, especially with the volatile busts and booms in the value of the cyber-based currency. Intense regulations can be quite a challenge to Bitcoin because the cyber coin was favored and was praised essentially for its independence from the traditional regulatory authorities.

Last March, a Branch of the Treasury Dept. of the US stated that any firm that deals or transfers Bitcoins will be labeled as a money service business. This means that the companies will have to provide the government with information as well as implementing policies that will prevent any kind of money laundering. Since such ruling, a minimum of 3 companies in Northern America reported that they had their accounts closed by their respective banks. One of these companies was Bitfloor which is a Bitcoin exchange company that is based in NYC stated that it was going to shut down and it still have not returned funds to its customers.

The problem with the regulation is that it will be connected, which is the entire purpose of the financial system. So it means that everyone that is connected to it will be controlled by the lawmakers of the US financial system. So if they deem any group or practice to be dodgy, it can be completely frozen out of the financial system.