Scrutiny for Virtual Currency

New York subpoenas Bitcoin-related firms in probe on criminal risk.

New York’s top banking regulator sent subpoenas to 22 digital-currency companies, including BitInstant LLC and Dwolla Corp., to determine whether new regulations should be adopted to govern the emerging industry, according to a person familiar with the matter.

Bitcoin is a virtual currency created four years ago that can be used to buy and sell a broad array of items, from electronics to illegal narcotics, according to the agency.

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