Manhattan district attorney Cyrus R Vance Jr has indicated that his department intends to watch developments in the bitcoin exchange sector with “immense interest”.
A long-time advocate for more stringent regulations in the bitcoin space, Vance used his platform to decry the technology as one that makes criminal conduct “too easy and too untraceable”.
Boon for law enforcement
Vance went on to say that regulated exchanges would be beneficial for law enforcement, should these companies support its efforts.
“We believe a regulated exchange would provide opportunities for law enforcement and AML professionals to work together to discuss typologies, examine cash-ins and cash-outs, and keep our world safer from terror and financial crime,” he said.
Since Monday, Coinbase has clarified that it believes New York to be in a legal "gray zone" that allows it to service customers.
The high-profile launch of its latest service, widely billed in the media as the ‘first regulated bitcoin exchange’ in the US, has also attracted the attention of the California Department of Business Oversight (DBO), the state’s financial services regulator.
The DBO moved to deny perceived claims made by Coinbase that its product is regulated in its jurisdiction.
Image via The New York County District Attorney's Office
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.