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New York regulator Benjamin Lawsky may use the cybersecurity rules he's proposed for virtual-currency companies as a model for traditional banks. That would subject the financial institutions his agency supervises to the most stringent data-security rules anywhere.
October 17 -
Banks will listen carefully to what regulators say next about virtual currency in the U.S., but in the meantime many financial institutions view Bitcoin as far too risky to touch.
September 29 -
Two small U.S. banks will begin offering an alternative remittance option. The development may signal a new era of competition in foreign exchange, but some critics see danger.
September 24
Arthur Levitt, a former chairman of the Securities and Exchange Commission, has been
Levitt has begun working with BitPay, a bitcoin processor, and Vaurum, a bitcoin exchange, on issues ranging from marketing to business monitoring.
"Bitcoin is a fascinating new product in the rapidly changing world of financial service," Levitt said in a press release Tuesday. "I hope to help BitPay and Vaurum blend their new business models with core monetary methods and transparency practices to ensure their long-term success."
His appointment comes as the industry faces increasing pressure from federal and state regulators, who have criticized the currency for having volatile exchange rates and high transaction fees.
The
"Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market," CFPB Director Richard Cordray said in an Aug. 11 press release.
Additionally, New York banking regulator
