07 May '13, 5pm

Now This Really Could Make A Dent In Bitcoin

Four-year-old Bitcoin is attracting the interest of regulators amid volatile booms and busts in the value of the cyber-currency and fresh media interest. Intensified regulatory scrutiny could pose challenges for proponents of Bitcoin, who have praised the currency for its independence from traditional authorities. In March, a branch of the US Treasury department said that all firms that exchange or transfer the virtual currency will be considered “money services businesses”. That means they must provide information to the government and introduce policies to prevent money laundering. It could also make it risky for other financial institutions to do business with firms that are not in compliance. Since the ruling, at least three companies in North America have reported having their business accounts closed by their banks. Bitfloor, a New York-based Bitcoin exchange, said i...

Full article: http://www.forbes.com/sites/timworstall/2013/05/07/now-th...

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