Industry Group Recommends States Broaden CIP Requirements for Virtual Currency Firms

By Kira Zalan

U.S. state regulators should require virtual currency firms currently subject to federal anti-money laundering rules to verify the identities of users of their services who do not hold accounts, a regulatory organization said Tuesday. The recommendation comes as part of the Conference of State Bank Supervisors' proposed rulemaking framework for state-level oversight. The group, which represents regulators in 50 states and four U.S. jurisdictions, also outlined steps to address cyber-security, consumer protection controls and other supervisory concerns for digital currency companies. Although the organization received responses to a December 2014 draft of the proposal acknowledging that Bitcoin and other virtual...