Bitcoin: A First Legal Analysis

The use of Bitcoins is increasing rapidly. Bitcoins are utilized in e-commerce to purchase both legal and illegal goods, they are transferred and traded and companies have invested their capital in the new digital currency. While the technical aspects of the system are well established, the legal framework remains unclear. Legislators all over the world are just starting to discover this new virtual phenomenon. This article illustrates selected legal challenges arising in different fields of law (public, criminal and civil law). Particular attention is paid to the German situation while the US-American context is also considered.