Bitcoin Companies Subpoenaed Over Regulatory Concerns

Bitcoin Companies Subpoenaed Over Regulatory Concerns
Image credit: AP
  • ---Shares
Free Webinar | August 16th

Find out how to optimize your website to give your customers experiences that will have the biggest ROI for your business. Register Now »

New York state financial regulators have issued subpoenas asking Bitcoin-related companies for information into whether safeguards are in place to prevent the virtual currency from being used in illegal activities such as money laundering.

The Wall Street Journal, citing people familiar with the matter, said the New York Department of Financial Services also wants information on whether the companies have consumer-protection measures in place, in addition to investment strategies for Bitcoin.

Leading companies Coinbase Inc, BitInstant and Coinsetter are among the companies receiving subpoenas, according to the Journal. New York regulators also sent subpoenas to companies backed by high-profile Bitcoin investors, including venture capitalist Marc Andreessen, and Cameron and Tyler Winklevoss, the Journal said.

The Journal says the subpoenas come as New York plans to issue a memo raising questions over whether Bitcoin companies are following state law. The memo and subpoenas also suggest Bitcoin companies will be subject to a host of new rules and regulations, which, up to now, they have avoided.

"We believe that -- for a number of reasons -- putting in place appropriate regulatory safeguards for virtual currencies will be beneficial to the long term strength of the virtual currency industry," Benjamin Lawsky, New York's superintendent for financial services, wrote in a draft memo reviewed by the Journal.
 

Next Article:
What Today's Leaders Can Learn From Pear...
OK

This website uses cookies to allow us to see how our website and related online services are being used. By continuing to use this website, you consent to our cookie collection. More information about how we collect cookies is found here.