By Julia Fioretti BRUSSELS (Reuters) - Europe should update its laws to reflect the rise of digital currencies, the head of a bitcoin start-up said, after a successful U.S. auction of bitcoins was seen as a sign of their broadening appeal. "One of the challenges is that without clear guidance from the EU, from the UK, it will limit industry development," said Jeremy Allaire, head of Circle, a bitcoin consumer finance company that allows people to use and store bitcoins online. Last October U.S. authorities seized 144,000 bitcoins online in a raid on Silk Road, an Internet black-market bazaar that authorities said had been used for illegal drug transactions. Bitcoin supporters maintain that digital currencies are set to expand further and that as they become more mainstream the price volatility and scams that have so far bedevilled them will decrease.
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