* Lawsky: Mt. Gox collapse is part of a "shaking out"
* Japan FinMin: not yet clear if crime or just bankruptcy
* New York State hoping to attract bitcoin operators
By Douwe Miedema and Tetsushi Kajimoto
WASHINGTON/TOKYO, March 4 The collapse of the
Mt. Gox bitcoin exchange could ultimately strengthen the virtual
currency industry by weeding out weaker operators and prompting
more supervision, New York's banking regulator said on Monday.
Japan's government, however, said it was still trying to
figure out how the Tokyo-based company, once the world's biggest
bitcoin exchange, could lose nearly half a billion dollars worth
of the virtual currency in a short period, and whether crime was
"We still have not had a clear grasp of the situation,"
Finance Minister Taro Aso said on Tuesday after a cabinet
meeting. "(We) don't know if it was a crime or just a
Mt. Gox filed for bankruptcy protection in Japan on Friday,
saying it may have lost some 850,000 bitcoins due to hacking
into its faulty computer system.
The collapse was another setback for the virtual currency,
which started circulating in 2009 and is accepted by some online
retailers. Yet many believe the electronic currency will
survive. Its proponents like the fact that its value relies on a
network of computers and is not tied to any government or
Benjamin Lawsky, superintendent of New York's Department of
Financial Services, told Reuters that Mt. Gox's collapse was
part of a "shaking out".
"It's on the one hand a setback, on the other hand it will
cause further improvements in this industry and some more
regulatory involvement," he told Reuters on the sidelines of a
banking conference in the nation's capital.
Lawsky wants to attract healthy bitcoin operators to the
state, and has floated the idea of launching a "BitLicense" to
regulate operators, and to align any new rules with existing
The agency hoped to have more to say this week about how it
was writing the new rules and considering how to allow bitcoin
business in the state, Lawsky said.
He identified one bitcoin exchange the agency is talking to:
Barry Silbert's SecondMarket Holdings, modelled after the New
York Stock Exchange.
"We've had several applications. I wouldn't say they're on
hold but they're being worked on, on a parallel path ... to
moving the regs," Lawsky told reporters. "Ask me later this
week, we are working on that."