Regulators have been struggling to come to a consensus, keep in touch and set a working relationship with Cryptocurrencies since they became big enough to worry about. The idea is simple, but implementation is much more difficult due to the quasi-anonymous nature of digital currency.
Regulators worldwide have not yet decided on a consistent approach. Some go the direct route, like China, and try and implement bans which are not as effective as they would hope. Others, like Switzerland, embrace the digital coins, hoping to attract more Blockchain builders.
Thus there is a large gray area at the moment, with regulators floundering in the middle.
Simple, in theory
Regulating cryptocurrencies should be quite simple, in theory. After all, unlike fiat money which can be transferred without any records, cryptocurrencies leave a digital footprint. That footprint is not as simple to follow as a bank transfer, for example, but it is not impossible.
Professor Andrei Kirilenko, director of the Centre of Global Finance and Technology at the Imperial College of London, believes that by their very nature, cryptocurrencies have a reporting system built in, but individuals sometimes obscure their identity in various ways..