back to article New York State to investigate 'Wild West' Bitcoin industry

A New York State banking regulator has issued subpoenas to more than 20 Bitcoin-related companies as part of an inquiry into the business practices of the virtual currency industry, The Wall Street Journal reports. "If virtual currencies remain a virtual Wild West for narcotraffickers and other criminals, that would not only …

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  1. Yet Another Anonymous coward Silver badge

    Thank God - in which we trust

    That the noble $ could never be used for illegal or immoral purposes.

  2. Captain DaFt

    Forget the scare talk.

    it's all about; "How can we manipulate a 'free' economy if people shun the almighty dollar for something else!?"

  3. Don Jefe

    It threatens our national security!!!! Send it to Cuba!

    Is there anything that doesn't threaten national security anymore? WTF are all these people scared of?

    BitCoin was doomed from the beginning, there's no reason to cite national security as a reason to investigate it. Using that as an excuse for everything is as bad or worse than the mass paedo epidemic that's apparently hit the UK.

  4. This post has been deleted by its author

    1. Rukario

      Re: bitcoin vs other currencies

      And you think the Almighty Dollar is any different?... indeed any fiat currency (most of which are issued by central banks that have USD in their reserves)

  5. Anonymous Coward
    Mushroom

    buying guns?

    I didn't know that the FBI accepted bitcoins?

    1. Nym
      Childcatcher

      Re: buying guns?

      Only for bribes. Their computer taskforce can't trace 'em.

  6. g e
    Holmes

    If we can't control it then we'll stop you having it.

    </nuffsaid>

  7. Anonymous Coward
    Anonymous Coward

    "If virtual currencies remain a virtual Wild West for narcotraffickers and other criminals ..."

    Last I heard, the narcotics industry in New York alone was worth over $1 billion per year. The total dollar value of all bitcoins in circulation is only a little over $1 billion and there is very little liquidity in the market.

    Until the liquidity increases (and the total circulation value increases) there isn't much scope for money laundering. You might be able to move a few k in and out here and there, but there currently isn't the scope for any large scale money laundering.

    1. jonathanb Silver badge

      But remember that the same unit of currency, whether a Dollar bill or a Bitcoin, can change hands several times in a year, so you are not measuring the same thing.

      Certainly, money passes through my account on a monthly cycle, most businesses are the same so I could potentially see the same money back in my account two months after I spend it.

  8. Thomas 4

    Thank heaven

    We have a banker to teach us right from wrong when it comes to morally questionable fiscal practices.

  9. Dan Paul
    Devil

    Protectionist and controlling behavior from NYS investigating Bitcoin

    Seems NY State needs to get itself involved in every little aspect of any and all peoples lives if for nothing else keeping the flow of money going.

    If NYS does not like something or it does not serve their needs (to tax the life out of it), expect the Inquisition whether it is deserved or not.

  10. Suricou Raven

    Virtual currency?

    Modern banking is so many levels of abstraction removed from any physical value store, it's even more virtual than bitcoin.

  11. dark1here

    When the Cyprus Govenment, part of the Eurozone currencies group "sequestrated" = stole 30% of savers hard earned savings, I started to wonder about Bitcoin, as it has no national boundaries, and no central bank to "control= devalue it, by calling it quantitive easing.

    US$ now worth 21.2% less than in 2006, due to quantitive easing or printing more bucks as it is generally known, as the fiscal last resort of banana republics. Live on Bitcoin, you are no worse than the others

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