Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
1% doesn't want one F'ing with alt currency - Bitcoin - Lawmakers are fixating on digital currency.
Bitcoin miners, beware: Lawmakers are fixating on digital currency
Nonprofit Bitcoin Foundation has received a cease-and-desist letter to stop illicit money transmission, though it doesn't buy or sell currency
Nonprofit Bitcoin Foundation has received a cease-and-desist letter to stop illicit money transmission, though it doesn't buy or sell currency
https://www.infoworld.com/t/government/bitcoin-miners-beware-lawmakers-are-fixating-digital-currency-221387?source=IFWNLE_nlt_openenterprise_2013-06-26
Lawmakers have become increasingly focused on bitcoins as the virtual currency has gained popularity and value in recent months. But judging by a recent cease-and-desist notice sent to the Bitcoin Foundation, some government types may be taking the "shoot first, ask questions later" approach to dealing with the non-traditional currency. California's Department of Financial Institutions (CFI) has warned the nonprofit it "may be engaged in the business of money transmission" without a license or proper authorization.
The trouble with the accusation is that the Bitcoin Foundation doesn't buy or sell bitcoins at all -- which may explain why the accusation is prefaced with "may be." Even if the foundation manages to convince lawmakers that it's doing nothing illegal, organizations that do engage in buying and selling may need to brace for some legal battles.
The Bitcoin Foundation touts itself as a non-profit organization focused on standardizing and promoting the open source Bitcoin protocol. "One activity that the foundation does not engage in is the owning, controlling, or conducting of money transmission business," according to Jon Matonis, who serves on the Bitcoin Foundation board of directors.
Nevertheless, the foundation has to convince the CFI that it's not engaging in the illicit activities laid out in CFI attorney Paul Crayton's letter. Otherwise, it faces fines of up to $2,500 per violation per day plus criminal prosecution for violating federal laws, resulting in up to 5 years in prison and a $250,000 fine.
The trouble with the accusation is that the Bitcoin Foundation doesn't buy or sell bitcoins at all -- which may explain why the accusation is prefaced with "may be." Even if the foundation manages to convince lawmakers that it's doing nothing illegal, organizations that do engage in buying and selling may need to brace for some legal battles.
The Bitcoin Foundation touts itself as a non-profit organization focused on standardizing and promoting the open source Bitcoin protocol. "One activity that the foundation does not engage in is the owning, controlling, or conducting of money transmission business," according to Jon Matonis, who serves on the Bitcoin Foundation board of directors.
Nevertheless, the foundation has to convince the CFI that it's not engaging in the illicit activities laid out in CFI attorney Paul Crayton's letter. Otherwise, it faces fines of up to $2,500 per violation per day plus criminal prosecution for violating federal laws, resulting in up to 5 years in prison and a $250,000 fine.
I figured this would be targeted, took longer than I had thought it would.
2 replies
= new reply since forum marked as read
= new reply since forum marked as read
