David Lee
Courthouse News Service
April 7, 2014
For the first time, Texas banking regulators have established licensing and security guidelines for virtual currencies and their exchanges, such as the collapsed Bitcoin exchange Mt. Gox.
Texas Banking Commissioner Charles G. Cooper issued a supervisory memorandum on April 3, noting that cryptocurrencies such as Bitcoins, Litecoins, Peercoins and Namecoins lack intrinsic value because they are neither centralized, backed by a commodity nor convertible by law.
“At this point a cryptocurrency like Bitcoin is best viewed like a speculative investment, not as money,” Cooper wrote in the memo. “However, as this innovative technology develops, the [Texas Department of Banking] will continue to evaluate whether the nature of cryptocurrencies and the potential harm to the public warrant additional action.”
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