On Second Day of Bitcoin Hearing, Prosecutors Lobby for Enhanced Due Diligence Rules

By Brian Orsak

New York should require some digital currency companies to collect and periodically verify customer information to deter financial criminals, Manhattan's district attorney told state regulators Wednesday. On the second day of hearings hosted by the New York State Department of Financial Services (NYSDFS), Manhattan District Attorney Cyrus Vance, Jr. and Deputy U.S. Attorney Richard Zabel warned officials that the crypto-currency protocol Bitcoin and other forms of digital money serve as unique means for money laundering and fraud. Consequently, "digital currency exchanges, we believe, should be required to perform enhanced due diligence with respect to their customers' identification in the event...