From: CIO
The move signals a growing regulatory environment for the technology
By Zach Miners
IDG News Service (San Francisco Bureau) — New York financial authorities said Tuesday that they would soon begin accepting applications for virtual currency exchanges including those dealing in bitcoins, in a sign of regulators’ growing interest in the technology.
Approved applications will ultimately have to adhere to a proposed regulatory framework that New York plans to enact for virtual currency firms operating in the state. That framework will be developed no later by the end of June, New York’s Department of Financial Services announced Tuesday.
New York recently held hearings on a proposed regulatory framework. Financial regulators in the state started looking at the use of Bitcoin and other virtual currencies last year.
News of the regulations comes following the fall of Tokyo-based Mt. Gox, previously the largest exchange for buying and selling bitcoins, likely due to a hacking attack and mismanagement.
“The recent problems at Mt. Gox and other firms further demonstrate the urgent need for stronger oversight of virtual currency exchanges, including robust standards for consumer protection, cyber security, and anti-money laundering compliance,” said Benjamin M. Lawksy, New York’s superintendent of financial services, in a statement.
Leave a Reply