Bitcoin Investors Urge Restraint at Regulatory Hearing
The New York State Department of Financial Services held its first of two public hearings yesterday to discuss the regulation of Bitcoin. The discussion comes at a turbulent time for the cryptocurrency, and the stakes are high for both investors betting on Bitcoin-based ventures and authorities seeking to prevent criminal operators from exploiting the privacy afforded by virtual currencies.
With the arrest this Sunday of Charlie Shrem—a high-profile Bitcoin advocate who is heavily invested in the cryptocurrency (sources tell me he recently bought a plane with his crypto-bling)—New York prosecutors seemed to prove that they have both the will and the means to police illegal activities among the ranks of the Bitcoin elite. In this case, it didn't require a new regulatory framework. Shrem was charged under well-established anti-money laundering laws pertaining to any business that operates as a money transmitter.
Despite the recent charges, and despite the significantly larger trophy brought in by federal prosecutors last month when they arrested Ross Ulbricht for allegedly running the online drug bazaar Silk Road, New York officials are looking to expand their powers with new regulations specifically pertaining to Bitcoin and its ilk.
http://spectrum.ieee.org/tech-talk/computing/networks/bitcoin-investors-restraint-new-york-hearing
