New York is moving to bring some order to the largely unregulated world of digital currencies by proposing state licensing requirements for dealers that would include strict anti-money-laundering safeguards and consumer protections.
The state's Department of Financial Services proposed the regulations under existing law. Although the proposed regulations do not mention Bitcoin, the department refers to the proposal as "BitLicense." It is a response to the growing popularity of electronic money and its potential for misuse in burgeoning underground online economies.
The proposal has been released for public comment. If approved, a person or business engaged in "virtual currency business activity" would have to be licensed by the state unless already chartered to engage in currency exchanges. Dealers would undergo background checks and would have to show that business would be conducted "honestly, fairly, equitably, carefully, and efficiently."
William Jackson is writer with the <a href="http://www.techwritersbureau.com" target="_blank">Tech Writers Bureau</A>, with more than 35 years' experience reporting for daily, business and technical publications, including two decades covering information ... View Full Bio