"Points," "coins," "bucks" and other forms of virtual currency are becoming standard offerings for online game sites, social media sites, retailers and other businesses. Virtual currency systems generate revenue, provide low cost alternatives to credit cards for micropayments, offer prepaid solutions appealing to youth and other users without credit cards, and help companies build attractive loyalty programs. Although virtual currency systems are often used to sell digital content, they continue to become more complex—approximating real world currency—as they allow purchase of physical goods and services from multiple merchants, offer cash redemption options and facilitate P2P payments.

Even though the currency may be virtual, these systems pose real legal issues—both for "issuers" of the virtual currency and potentially for other network service providers and partners. This presentation addressed these legal issues and provided suggestions for what your company can do to comply with the current laws.