Virtual currencies present a host of new opportunities for businesses of all kinds, from entrepreneurs seeking to raise capital from unusual quarters, to traders looking for the next structured derivative market.

As with any new product, however, legal and regulatory pitfalls may arise. To say that the regulatory landscape for virtual currencies is not yet set is an understatement.

Regulators will need to decide whether to create new rules designed for these novel concepts, or whether the old rules can be similarly applied. Recent activity by the U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission signals that regulation in these areas will evolve in fits and starts and will likely lead to compliance and enforcement issues for the unwary. Where new financial instruments exist in shades of gray, businesses must exercise caution.