Parliament this week is expected to take up legislation designed to reign in the wild, wild west of cryptocurrencies.  It comes as the grand-daddy of made-up money, Bitcoin, blasted new highs way above AU$7,600.

Cryptocurrencies slip through the cracks in current laws, which define "e-currencies" as "an internet-based, electronic means of exchange" backed by "bullion", "precious metal" (gold or silver), or something else that is tangible.  Bitcoin isn't - it's backed by something called a "cryptographic algorithm".

The new rules would plug that loophole and see digital currency exchanges that deal in Bitcoin, Ethereum, and other cryptocurrencies placed under the watchful eyes of the financial intelligence regulator AUSTRAC; the exchanges will be required to be registered, and every transaction will be documented.  That's going to help law enforcement that see cryptos as conduits for criminal activity.

"Virtual currencies, such as Bitcoin, are increasingly being used by serious and organized crime groups," The Australian Criminal Intelligence Commission (ACIC) said in a report in August.  "They are a form of currency that can be sold anonymously online, without reliance on a central bank or financial institution to facilitate transactions."