optimator999

And conversely the abundance of regulation doesn't seem to stop too-big-to-fail banks from laundering money.

Tax law has a concept of a “defensible position”. That is, ultimately, the tax authority may decide you are wrong, but it if you have a defensible position you’ll be held accountable for only the taxes and interest and not the penalties.

However, AML law seems to say either you did or did not; there is no try.

How can bitcoin based businesses operate in the absence of digital currency law and not fear for civil and criminal penalties?

Alternatively, doesn’t waiting for regulation leave those same businesses open to jurisdictional arbitrage from companies starting in foreign jurisdictions?