Letitia James, New York Attorney General warned investors and financial institutions about the dangers of misusing cryptocurrencies on Monday.
“We’re sending a clear message to the entire industry. You either play by the rules or we will shut you down,” Mrs. Letitia said in a press release.
The largest cryptocurrency by market cap was created in 2009 by Satoshi Nakamoto to replace the current financial system, and give anonymity to its traders. However, Bitcoin has been misused by holders and was widely used in deep-markets to buy illegal goods and money laundering activities. In February, U.S. Secretary of the Treasury warned about the misuse of Bitcoin. Bitcoin being used for illegal purposes is the concern.
Yet, investment institutions such as Goldman Sachs, JPMorgan, and MicroStrategy invested billions of dollars in the digital asset. Additionally, companies like MasterCard, Bank of New York, PayPal, and Tesla also endorsed the crypto leading to a mass adoption by traders.
Bitcoin rose to a record-breaking $58,332 in February following the mass adoption by Wall Street banks, major financial institutions and even car manufactures. In January, Tesla filed with the Securities and Exchange Commission to buy $1.5 billion worth of Bitcoin.
