Bitcoin Hearings in New York: Results

In New York ended the hearings on the Bitcoin, which were held at the initiative of the Department of Financial Services. Much of the hearing was devoted to the problems of regulation of digital currency. Representatives of the Government and businesses have tried to find a compromise on these issues.

Richard Zabel, representative of the public prosecutor’s United States, said that they needed more tools than they now have to stem the tide of problems cropping up with virtual currencies as they have become more popular. Zabel was involved in the team that tracked down Ross Ulbricht, owner of Silk Road. Bitcoin advocates said that cash is actually more attractive to criminals than new forms of digital money, because cash can be moved without any digital trace. Zabel pointed to the difficulty of moving large amounts of cash around the globe.

«Although cash is also an anonymous form of currency, there are significant barriers to transferring bulk cash out of the banking system», he said.

However, industry representatives themselves Bitcoin spoke at the hearing, that they hope for greater legal clarity in the use of Bitcoin.

«Regulation could be a good thing», said Fred Ehrsam, the co-founder of Coinbase.

Such transparency of work is beneficial both for investors and for large banks like Wells Fargo.

Jeremy Allaire, founder and CEO of Circle, said:

«If you’re not interested in mainstream adoption, and you’re really focused on anonymous, completely self-governed currencies, theres 20 or 50 or 100 altcoins to go do that with».

Allaire and Ehrsam noted that rules are a necessary aspect of running a money service business, even those dealing in Bitcoin. «Regulation could be a positive in this regard, if there is a framework where companies are required to perform due diligence or enhanced due diligence, we really filter that bottleneck», Ehrsam said.

Executive vice president of Overstock.com Jonathan Johnson stated that online retailers would also help ensure identity tracking.

Interesting idea was proposed by Benjamin Lawsky, superintendent of financial services for the State of New York. The idea is to create Bitcoin Exchange in New York. Such exchange, according to Lawsky, will be a «double whammy» on fraud and a lack of regulation. Jeremy Allaire demonstrated his support for the idea saying that such a development would “provide a more mature platform” for the community.

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