The IRS has been cracking down on bitcoin exchanges and bitcoin wallets in recent months, including seizing hundreds of millions of dollars worth of the digital currency.
The crackdown has been in response to an August report by The Wall Street Journal that revealed that bitcoin exchange Mt.
Gox was operating without a license and had been selling bitcoins to people in violation of the law.
Bitcoin exchanges like Mt.
Gox are a virtual currency that is used to exchange goods and services.
But unlike traditional currencies like the U.S. dollar or Euro, bitcoins are not backed by any government or central bank.
The new crackdown, which is being called Operation Ceasefire, has been a boon for bitcoin companies and individuals who use the digital cryptocurrency.
The move has also spurred a rise in bitcoin price.
On Friday, the New York Department of Financial Services, the U-S.
government’s main bitcoin enforcement arm, issued a statement calling for a halt to bitcoin trading in the state.
The statement said the department is “deeply concerned” about the “serious potential for money laundering” and that bitcoin exchanges are “directly associated with criminals, counterfeiters, and terrorist groups.”
The new rules come after Mt.gox’s CEO, Mark Karpeles, was charged in March with wire fraud and money laundering.