There seems to be a common misconception about what it means to be "unregulated". It doesn't mean that businesses engaged in the exchange of bitcoins are not subject to any laws.
I am confident that operating an insolvent corporation and engaging in securities fraud (front running, insider trading) are illegal.
I am not. Front-running is illegal if one is regulated by the SEC. Is it illegal if one is unregulated? It is illegal to trade stocks using insider information, but not Bitcoin. There are no regulations other than MSB requirements that provide any legal avenues for this......I suppose it would be a Civil Court issue.
Bitcoin is not a security.I'd say good luck to anyone pushing that argument. Again, that the FSA has not chosen to regulate bitcoin
as yet, and the fact that there are no regulations
specific to bitcoin do not mean that these businesses are not subject to applicable laws. It's a matter of
which regulations bitcoin falls under, and
when the FSA or other appropriate agency decides to pursue that matter.