BITCOIN proponent Cameron Winklevoss has told US regulators that potential regulation of the virtual currency “will play the biggest role in bitcoin’s forthcoming evolution.”
In opening statements made at a hearing of the New York Department of Financial Services, Mr Winklevoss also warned that “overregulation could cripple its development”.
Mr. Winklevoss and his brother, Tyler, were among the witnesses speaking during the first day of the two-day hearing.
The Winklevoss twins, who faced off against Mark Zuckerberg over the founding of Facebook, are large investors in the virtual currency and have ploughed money into companies that are developing uses for Bitcoin.
They have also proposed establishing an exchange-traded fund that is dedicated to Bitcoin.
Responding to a question from Benjamin Lawsky, the superintendent of the department, Tyler Winklevoss also described Sunday’s arrest of a prominent bitcoin entrepreneur as a “speed bump” for the fledgling industry.
Cameron Winklevoss also took issue with comments made last week by J.P. Morgan Chase & Co. Chief Executive James Dimon about Bitcoin, specifically the point Mr. Dimon made in a CNBC interview that “it’s almost impossible” to know your client and conduct anti-money-laundering reviews when Bitcoin is being used.
“They will eventually be made as a payment system to follow the same standards as all these other payment systems. That will probably be the end of them.”
Mr. Winklevoss said Mr. Dimon has a “fundamental misunderstanding” of Bitcoin.
A J.P. Morgan spokesman declined to comment.