New York regulator issues subpoenas for Bitcoin, wants regulation for virtual currencies

The Liberty Beat

BY: Derrick Broze

The New York Department of Financial Services has issued a subpoena to several companies involved with virtual currency Bitcoin. The Wall Street Journal reported that Coinbase Inc, BitInstant, Coinsetter and others received subpoenas requesting informtion regarding business practices of the virtual currency industry as well as information on antimoney laundering programs, consumer protection measures and investment strategies. Benjamin Lawsky, head of the DFS, will issue a memo Monday claiming that virtual currency companies are not complying with the state’s money transmission laws, and calling for  “appropriate regulatory safeguards for virtual currencies.”

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