Who is Liable for Non-Compliant Cryptocurrency Transactions : Should Transaction Validators be Held Liable?

Cryptocurrencies are based on digitally signed updates to a ledger maintained in a decentralized manner according to consensus mechanisms in compliance with consented protocols. The ledger updates are often referred to as transactions and the participants in the consensus mechanisms can be called transaction validators. This paper analyzes whether holding transaction validators liable has a deterrent effect on non-compliant transactions and possible legal bases for enforcing such liability. It is argued that such a liability has a deterrent effect and seems indispensable in a world of mainstream cryptocurrency adoption