New York State Proposes Sweeping Bitcoin Regulations 121
An anonymous reader writes On Thursday, Benjamin M. Lawsky, the superintendent of financial services, announced proposed regulations for virtual currency companies operating in New York. The "BitLicense" plan, which includes rules on consumer protection, the prevention of money laundering and cybersecurity, is the first proposal by a state to create guidelines specifically for virtual currency. "We have sought to strike an appropriate balance that helps protect consumers and root out illegal activity—without stifling beneficial innovation," he said in a statement.
Translation (Score:5, Insightful)
Interstate Commerce Clause (Score:5, Insightful)
NY State may run afoul of the Interstate Commerce Clause which bans them from interfering with the Universe outside their borders.
Re:The Death of Bitcoin? (Score:5, Insightful)
The only way to anonymize your coin is to use a service which mixes up your coins so that it's nearly impossible to trace where they went once they go into the system.
Re:Interstate Commerce Clause (Score:4, Insightful)
NY has a unique position among states because so many finance-related companies are headquartered there.
Thanks, but no thanks (Score:4, Insightful)
we believe that setting up common sense rules of the road is vital to the long-term future of the virtual currency industry, as well as the safety and soundness of customer assets.(We think the situation at Mt. Gox, for example, made that very clear.)
It seems to me the Bitcoin community has been doing just fine without regulatory "assistance". Sure some people got burned by Mt. Gox, but I'm okay with that being one of the risks if it allows me to avoid government meddling. The State is a hell of a lot more of a threat to me than some shyster like Karpeles.
Re:Already covered? (Score:2, Insightful)
Yeah its not like millions of dollars worth of bitcoins disappeared from Mt Gox without anybody being held to account ... oh wait!
That happens with US dollars too. Former NJ Governor and former US Senator John Corzine lost/misplaced hundreds of millions of dollars at the financial company that he ran. He did not go to jail. Of course it helps to be a leading Democrat and friend of the President of the United States. He was on Obama's short list for a cabinet position and Obama had publicly cited Corzine as one of his best allies in the Senate. For some reason the US Justice department didn't feel a need to send him to jail.
Re:Translation (Score:4, Insightful)
Translation translation translation:
People are a problem. - Douglas Adams
Virtual currencies? (Score:4, Insightful)
It sounds so broad as to include my Final Fantasy XI gil, World of Warcraft gold and Star Trek Online credits.
Will they try to tax my Steam achievements too?
Can someone please fly more planes into this (Score:0, Insightful)
joke of a city? Sick of hearing about these authoritarian fucks banning and frisking everything.