Bitcoin Exchanges Vs. Banks and Financial Institutions

It looks as if there might be two different economies forming. The increasingly regulated economy of Banks and Financial Institutions which are closely monitoring the movement of money and the Bitcoin economy of payments done with as little information as an email. At some point, Bitcoin exchanges will need to adopt some this regulation if expectations are to expand its market. Recent laws in NY have seen many startups there leave because they find the process and requirements too costly. Many Bitcoin companies have cited that since the application process requires legal assistance, it can run up to $100,000 to complete. If the situation in New York is any indication many Bitcoin startups may opt for the unregulated route. Regulations do not need to be such a cost burden to companies nor should they make companies less competitive.