New York gave a Bitcoin company the green light to operate under state regulations Thursday, in what may be the first in a series of charters intended to mitigate concerns about virtual currencies.
Virtual currency businesses operating in New York may soon have to obtain special licenses and establish anti-money laundering, cyber security and consumer protection programs, the state's banking regulator announced Thursday.
More than a year into an effort by the digital currency industry to convince critics that its promise doesn't extend to criminals more than consumers, Bitcoin proponents are questioning whether they have the right messenger to deliver their message.
Turned away by American banks, some U.S.-based digital currency companies are using foreign bank accounts to send their proceeds back into the United States to pay employees and clients.
The regulatory concerns of Bitcoin and other digital currency platforms may extend beyond the anti-money laundering requirements outlined by the U.S. Treasury Department earlier this year, lawmakers and congressional witnesses said Tuesday.
New York States financial regulator will soon hold a public hearing to determine whether it should license digital currency companies that comply with regulations aimed at money launderers and fraudsters.
Even as the use of Bitcoin grows, the differences in opinion about the risks the digital currency poses only seems to get larger.