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Consumers, businesses testing out bitcoins, regulators not as happy

While consumers and businesses are willing to test out bitcoins, state and federal regulators are not as enthusiastic about the cryptocurrency
By: Michael Hatamoto | Business, Financial & Legal News | Posted: Oct 15, 2014 12:30 am

Thousands of businesses and e-tailers might have jumped on the bitcoin bandwagon, but that doesn't mean regulators are as enthusiastic. Without legal guidelines to help draw a clear road map, there is a risk that bitcoin innovation will be limited - even with more consumers interested in making purchases from retailers using the cryptocurrency.




"We have sought to strike an appropriate balance that helps protect consumers and root out illegal activity - without stifling beneficial innovation," said Benjamin Lawsky, New York Superintendent Financial Services. "Setting up common sense rules of the road is vital to the long-term future of the virtual currency industry, as well as the safety and soundness of customer assets."


Bitcoins aren't insured or backed by banks, and that could make it difficult for regular users that want to keep the cryptocurrencies as an investment - and with some countries, such as Ecuador banning bitcoins - these type of problems will remain a significant problem moving forward.


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