The New York Department of Financial Services issued a public order indicating that it will begin to consider proposals and applications for the establishment of regulated virtual currency exchanges operating in New York. The public order marks the next phase of the DFS’ attempt to regulate virtual currency. The DFS previous held hearings on virtual currencies in January 2014 (see January 21, 2014 Alert). The DFS will accept formal proposals and applications to operate virtual currency exchanges. Approved applicants will ultimately be subject to new virtual currency regulations, which are expected to be proposed in the second quarter of this year.