By Robin Sidel
Bitcoin proponent Cameron Winklevoss told regulators Tuesday 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 Inc., are large investors in the virtual currency and have plowed 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.
Write to Robin Sidel at email@example.com
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(END) Dow Jones Newswires
January 28, 2014 15:29 ET (20:29 GMT)Copyright (c) 2014 Dow Jones & Company, Inc.
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