Tags: Winklevoss | bitcoin | Mt. Gox | regulation

Winklevoss' Support for Bitcoin Unshaken By Mt. Gox Collapse

By Dan Weil   |   Wednesday, 26 Feb 2014 01:53 PM

The at least temporary shutdown of Mt. Gox, once the bitcoin's dominant exchange, hasn't dulled the enthusiasm of Cameron Winklevoss for the virtual currency.

He and his twin brother Tyler are among the most famous advocates of the currency. They own approximately $64.1 million worth of bitcoins, according to The New York Times.

Mt Gox's collapse "underscores just how far the bitcoin ecosystem has come," Cameron Winklevoss told the paper.

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"Several exchanges have seamlessly picked up the slack, and the market price has shown remarkable resilience. Mt. Gox is in the past, and the brightest minds in the room are hard at work building a responsible and secure future."

Tokyo-based Mt. Gox suffered technical problems for months, and rumors have circulated that 6 percent of all bitcoins in existence — now worth more than $430 million — were stolen.

Benjamin Lawsky, New York State's superintendent of financial services, also sees a silver lining in the Mt. Gox cloud.

"It's a significant event, but I think there's a decent chance that it is part of what we would call this sort of shaking out of the industry as it matures and slowly becomes a little more regulated," he told The Times.

Karl-Friedrich Lenz, a law professor at Tokyo's Aoyama Gakuin University and a Mt. Gox customer, also stresses the importance of regulation.

"The Mt. Gox case is a good example of what happens if you ignore existing Japanese law requiring a bank license for taking deposits," he told Bloomberg. "Solid regulation is necessary" for bitcoin's use to expand, he said.

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