Inline Insights

The Financial Times recently reported that the amount lent by peer-to-peer websites internationally was almost $3bn in 2013, up from around $100m in 2007. There has been an equally impressive growth in the estimated number of crowdfunding websites, which have grown from 1,100 to 2,700 in the last year alone.

Last week the Financial Conduct Authority (FCA), which is responsible for UK financial regulation, outlined plans to launch a policy hub for start-up companies including those in the virtual currency sector. Head of the FCA, Martin Wheatley (pictured), stated “it’s an imperative for the regulators to be standing on the right side of progress”.

A number of news stories over the last few days once again illustrate the momentum that virtual currencies are gathering towards increased legitimacy amongst regulators and consumers. 

The Federal Election Commission (FEC) has unanimously approved the use of Bitcoin for political donations after months of debate on the issue. Commissioners imposed several conditions. Among them: No anonymous bitcoin contributions will be allowed, and campaign treasurers must scrutinize the donations for "evidence of illegality."

Investors should consider risks associated with virtual currencies, including bitcoin, before trading in them, two U.S. regulators warned on Tuesday.

New rules for unregulated rideshare companies such as Uber, Lyft, and Sidecar passed the Illinois House on Thursday over complaints the push was aimed at stifling competition to the state’s powerful taxi industry.

The chamber voted 80-26 to support legislation sponsored by Rep. Michael Zalewski, D-Riverside, who described his measure as a “comprehensive, thoughtful” consumer-protection step.

“We want to ensure licensure. We want to ensure insurance coverage, and we want to ensure safety of our constituents,” Zalewski told his House colleagues.