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Bitcoin faces regulations in New York

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The fast evolving digital currency, Bitcoin, will face regulations in New York with possibly a BitLicense as discussed by the state’s top banking regulator on Tuesday, posted on Reuters online late afternoon today.

Benjamin Lawsky, New York’s Superintendent of Financial Services, said such regulatory guidelines would seek to bar misconduct like money laundering while not cornering in booming cryptocurrency technology. His comments came during the start of hearings this week - organized by the New York Department of Financial Services - on the future of online currencies

This also comes one day after the arrest of BitInstant CEO, Charlie Shrem and accused co-conspirator, Robert Faiella, of supporting an illicit Bitcoin exchange for users of Silk Road, the underground marketplace best know for illegal drugs and murder for hire.

Shrem announced on Tuesday that he has resigned from the Bitcoin Foundation, which has emerged as the premier authority on the five-year Bitcoin virtual currency.

‘As a foundation, we need to remain focused on our core mission to standardize, protect, and promote the Bitcoin core protocol,’ director Jon Matonis said in a statement and announced that the Board accepted Shrem’s resignation today.

While advocating clear rules for digital currencies, Lawsky emphasized how quickly this new financial realm is evolving in view of the Silk Road FBI arrest and the close of Shrem’s BitInstant.

‘That is, in part, why we're evaluating whether our agency should issue a so-called 'BitLicense' specifically tailored to virtual currencies,’ he said, according to Reuters.

Lawsky, also said at the hearing that such regulatory guidelines would seek to bar misconduct like money laundering while not cornering in booming cryptocurrency technology.

‘Ultimately, it’s our expectation that the information we’ve gathered in this fact-finding effort will allow us to put forward, during the course of 2014, a proposed regulatory framework for virtual currency firms operating in New York,’ Lawsky said in his statement, according to MarketWatch.

To view more information about Bitcoin, please, see articles listed below in Author's suggestions and view the video atop this article.

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