New York becomes first state to finalize bitcoin regulations

New York has become the first state in the U.S. to lay down regulations and rules for the trade of virtual currency, such as bitcoin.

The rules released Wednesday by the New York Department of Financial Services affect traders who accept, sell or buy virtual currency, according to ZDNet.

Under the rules, companies that use virtual currency and hold on to customer funds must apply for a license, and those businesses would need approve of the financial regulator before they make substantial changes to their business models or products.

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