Editor’s Note: In this article extract from Baker Hostetler’s Discovery Advocate blog, Nkosi Shields and Ryan Walton highlight considerations and challenges around discovery and cryptocurrencies.
Extract from article by Nkosi Shields and Ryan Walton from Discovery Advocate
Does bitcoin keep appearing in your news feed? As cryptocurrencies become adopted and accepted by mainstream vendors and consumers, it’s a good idea for attorneys to think about the potential litigation and eDiscovery challenges ahead. While U.S.-based cryptocurrency exchanges are subject to Bank Secrecy laws and anti-money laundering provisions, regulation and enforcement still lag, leaving the door open for manipulation, fraud and litigation.
This past fall, Bitcoin, the most popular cryptocurrency, experienced a massive run on its price –doubling in value within a two-week span and ultimately reaching an all-time high of $19,205 per coin before falling sharply (just last February, Bitcoin traded at $902 per coin). Because of its volatile trading nature, and its lack of protections for investors, regulators and high end investment houses are skeptical of Bitcoin’s value and have been reluctant to encourage the cryptocurrency markets, deeming them a speculative investment.
Reticence aside, many notable traders and financial experts agree that cryptocurrencies are likely here to stay and could become an emerging asset class.
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