Why bitcoin and its digital cousins are under increasing scrutiny

Cryptocurrencies are still more investments than way to pay, but their mainstream acceptability continues to grow, proper regulation will follow

Cryptocurrencies are under the microscope as never before. Financial regulators in the US are concerned about the emergence of bitcoin and its digital cousins as speculative investments and have hinted that much tougher regulation is in the pipeline.

Last week, the Securities and Exchange Commission (SEC), which regulates the New York financial markets, issued an alert, saying it was "cautioning market participants that offers and sales of digital assets by 'virtual' organisations are subject to the requirements of the federal securities laws".