(Bloomberg) The spread of Bitcoins is now prompting regulators in Scandinavia to draft new rules in an effort to prevent virtual money from slipping into a legal gray zone.

Denmark is the latest nation to prepare standards to protect its consumers from risks associated with virtual currencies after the regulator found it lacked authority to prevent a company creating an exchange for the software.

The most likely outcome would be an “amendment to existing financial legislation so that we have regulation covering it,” Michael Landberg, chief legal adviser at the Financial Supervisory Authority in Denmark, said yesterday in a phone interview. “It is also important to have this included in money laundering acts.”

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