Can virtual currencies improve our payment systems and can guardrails be put into place to prevent in the dark activity such as money laundering?asks Benjamin Lawsky,Superintendent of Financial Services for New York state,about Bitcoin.Bitcoin is peer to peer.An algorithm and key allows you to make transactions without revealing your personal information,Mr.Lawsky explained.
Bitcoin has real potential if we can get to that system where technology is allowed to flourish while we can prevent it being used for money laundering,Mr.Lawsky said.*
Bitcoin Exchange BitInstant CEO Charlie Shrem was arrested Sunday at JFK International Airport by federal authorities.In a complaint filed with the Southern District of New York,he has been charged by the Justice Department with conspiracy to commit money laundering and operating an unlicensed money transmitting business.The complaint alleges he and Robert Faiella,who was arrested in Florida,sold more than 1 million dollars of Bitcoins to buyers and sellers of drugs on former underground online drug site Silk Road.Three months ago,Silk Road was shut down by police and its alleged founder Ross Ulbricht was arrested.
Shrem was also charged with failing to file suspicious activity reports with respect to transactions he allegedly helped Faiella facilitate through BitInstant.Apart from being head of BitInstant,Shrem is co-owner of the New York bar EVR,which takes Bitcoin payments,and is co-chairman of the Bitcoin Foundation that promotes the virtual currency.*
Benjamin M. Lawsky is an attorney and the first head of New York state's new Department of Financial Services,which,as Governor Andrew Cuomo's Chief of Staff,he helped create.As Superintendent,he supervises all insurance companies;all state-chartered depository institutions;and most US-based branches and agencies of foreign banking institutions.The department also regulates all the state's mortgage brokers,mortgage bankers and check cashers;as well as money transmitters,budget planners and so on.In total,the new department supervises 4400 entities with assets of some 6.2 trillion dollars.The department merged the former Banking and Insurance Departments into a modern,unified financial regulator.
Mr.Lawsky is a graduate of Columbia Law School and Columbia College.
No comments:
Post a Comment