REPORT: NY Regulator Issued Subpoenas To All Of The Popular Bitcoin Companies

ROB WILE AUG. 12, 2013, 8:13 AM 17

The Wall Street Journal's Robin Sidel says New York Department of Financial Services has subpoenaed about two dozen Bitcoin merchants as part of an inquiry into their compliance with the state's finance statutes.

Sidel says firms run by Marc Andreessen and the Winklevoss Twins received the notices.

Agency chief Benjamin Lawsky says he's considering setting new guidelines for money transmission laws specifically aimed at Bitcoin commerce.

We recently discussed the effect increased scrutiny from regulators could have on Bitcoin, and why it could end up becoming a victim of its own legitimacy.

So this seems likely to compound the issue.

Gold Shorts Cover At Fastest Pace In 13 Years

Submitted by Tyler Durden on 08/12/2013 08:36 -0400

Gold shorts covered an enormous 23,518 futures contracts last week - the equivalent of 2,351,800 ounces of gold. With JPMorgan appearing to be calling everyone (here andhere) to get their hands on gold to deliver, it seems our concerns over a short-squeeze are starting to solidify. The last time shorts collapsed at this fast a rate was in the 1999/2000 period which saw a considerable 33% squeeze ramp in gold prices over the space of 3 weeks in the fall of 1999. Notably, the gold short position still remains huge compared to historical values - having fallen back only to the previous all-time record high levels (i.e. plenty of room for moar squeeze). In addition to this surge in covering, Gold ETFs saw their first inflows in 2 months.