Regulatory Interest a Growing Source of Division Among Bitcoin Enthusiasts

By Colby Adams and Brian Orsak

The following is the second of a two-part story on how the Bitcoin market is changing under the scrutiny of federal and state officials. Read the first part here. When the U.S. Treasury Department issued guidance in March clarifying the reach of a July 2011 final rule, its full import did not escape some users of the digital currency protocol known as Bitcoin. The federal government had told them, unambiguously, that they must comply with complex and costly federal regulations. In the months since, the decision to define some digital currency companies as money services businesses (MSBs)-companies under the rubric...