The New York State Dept. of Financial Services is proposing a"BitLicense" to regulate firms that accept Bitcoins and otherInternet currencies to protect consumers from money launderingschemes. Benjamin Lawsky, New York's superintendant of financialservices, says that companies that receive, transmit or storevirtual currencies will have to obtain a license and hold the sameamount of virtual currency that they owe customers. Companies alsomust issue receipts to customers who pay in bitcoins and verifycustomers' identities and addresses. This proposal is open to public comment for 45 days beginningJuly 23, and after which face additional review and possiblechanges. In a statement, Lawsky says that it's vital to set up thelong-term future of the virtual currency industry and to protectthe safety and soundness of customer assets. "We havesought to strike an appropriate balance that helps protectconsumers and root out illegal activity—without stifling beneficialinnovation," he says. In March, the IRS said it would treat bitcoins and othervirtual currencies as property and not currency, giving a boost toinvestors. The price of a bitcoin has increased substantially sinceearly 2013, where it went from $13 to more than $600 today. Thevalue of a bitcoin is faster to figure out than ever, as GoogleSearch now supports Bitcoin in its currencycalculator.  Insurance offerings and implicationsInsurers have been hesitant to provide coverage to businessesthat operate on virtual currency. "Insurance companies do notunderstand [bitcoin], and even fear it," Xapo CEO Wences Casarestold CoinDesk. Earlier this year Lloyd's was the first tooffer coverage to Elliptic Vault, a bitcoin storage service, butit's deal fell through as  CoinDesk reported. Other insurers have sincejoined the arena.  In June, Great American Insurance Group announced that it willoffer virtual currency coverage through its Fidelity/Crime Divisionto both commercial and government policy holders. In a statement,Great American said that "Standard crime insurance policies,including Great American's crime policy, currently do notautomatically provide coverage for virtual peer-to-peer mediums ofexchange. Crime insurance coverage for Bitcoins can now be grantedby an endorsement to an existing crime policy." Coverage isavailable in most states. Bermuda-based Meridian Insurance offers virtual currencycoverage to Xapo, an online bitcoin vault based in California.Senior Vice President of business development Ted Rogers toldCoinDesk that the company's policy is "much larger than $15million" and part of the reserve is held inbitcoins.