From: JDSupra Business Advisor
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Emerging Cybersecurity Regulations
Cyber hackings involving Bitcoin exchanges can have disastrous consequences for users, particularly where such hacking results in stolen funds. Unlike banks and credit card issuers that provide consumers with certain protections from theft or other such losses, no such safeguards exist in exchanges for the loss of bitcoins. Consequently, Bitcoin users whose wallets are compromised as a result of a cyberattack may suffer irreversible loss.
Further problematic is the lack of clarity regarding the application of existing cybersecurity regulations to Bitcoin exchanges. Currently, the landscape of cybersecurity regulation consists of a patchwork of federal and state laws. These laws include industry specific regulations, such as HIPAA, GLBA, as well as state breach notification laws and general consumer protection statutes.
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