Manhattan district attorney, Cyrus R Vance Jr, has said that his department plans on monitoring the developments like the launch of Coinbase’s bitcoin exchange with great interest. During a keynote address at the Association of Certified Anti-Money Laundering Specialists’ (ACAMS) AML Risk Management Conference on Monday, he said the following without mentioning Coinbase by name:
“You may have seen news recently about an effort to ‘take bitcoin mainstream’ by creating the first regulated bitcoin exchange for American customers. We are watching efforts like these with intense interest.”
He explained that a regulated exchange can assist in law enforcement-related matters. The two would work collaboratively in examining cash flows and keeping the world safer from terror and financial crime.
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“Unregulated currency makes this kind of conduct too easy, and too untraceable,” he said.
Exchanges like Coinbase find themselves having to walk a fine line between catering to some of the passionate libertarians that are common in the Bitcoin community and running its highly compliant operation. It is not uncommon to find redditors posting complaints of Coinbase rejecting transactions due to their perceived riskiness.
Indeed, some expressed worry over government involvement in their trading soon after the launch was announced. However, traders may have to look ahead at which venues will be the most sustainable, and may have to make some difficult choices.