Bitcoin Regulatory Capture Has Begun

Mafia Don Lawsky will be stepping down as the head of the NYDFS next month after spending 4 years at the agency. During his tenure the Don Lawsky shook down everyone from BNP Paribas to Bitcoin startups to a tune of $6 billion. But what remains for Don Lawsky after he leaves government office? Bloomberg has just reported that he will be opening a digital currency consulting agency.

The 45-year-old regulator plans to set up his own consulting firm in New York, advising financial institutions on matters related to technology, cybersecurity and virtual currency. He will also become a visiting scholar at Stanford University’s Cyber Initiative starting in the fall.

Bitcoin has become just like any other industry. The former regulators will now for a fee make sure that you can navigate the assbackwards regulations that they themselves help create. For a fat fee Don Lawsky can bless you as a Bitcoin or crypto currency business. VC firms can rejoice as their precious cash can now find a more direct route into the regulators pockets.