Massachusetts might want to take a cue from the Empire State when it comes to virtual currency regulation.

In New York, Benjamin Lawsky, superintendent of that state’s Department of Financial Services, wants to make it harder to launder money and easier to protect consumers from the perils that come along with virtual currency. Lawsky is proposing a New York businesses obtain a “BitLicense,” essentially a license for businesses that use Bitcoins or other virtual currency. New York would be the first state in the U.S. to implement these rules.

“Our objective is to provide appropriate guard rails to protect consumers and root out money laundering without stifling beneficial innovation,” Lawsky said in a speech at the New America Foundation in Washington, according to Reuters.

Given the fact that there exists a veritable Wild West in the world of virtual currency – its value fluctuates greatly depending on what day it is – we think this is a good thing.

Whether Massachusetts will consider the same exact regulations as New York remains to be seen.

Last November, Massachusetts Banking Commissioner David Cotney, speaking in his capacity as the vice chairman of the Conference of State Bank Supervisors, told senators that state regulators already have an established structure for regulating and overseeing money transmitters and money services businesses that could serve as a framework for supervising alternative currencies.

We think it might be about time to follow New York’s lead in Massachusetts and regulate a payment method that is fast becoming mainstream.