hypnosec writes: BitInstant’s CEO Charlie Shrem and Erik Voorhees were invited to speak about virtual currency at the NACHA (the North American Payments Association) Annual Global Payments Forum held in Rio de Janeiro at the end of which the duo was sure that the world operates "on an inferior monetary system”. The interesting part of the whole forum was how Bitcoin as a currency and transaction system as of whole “eviscerates entire statutes of law.” A presentation by Senior Legal Counsel to the Federal Reserve titled “The Implications of Dodd-Frank Section 1073” shed light on requirements that need to be fulfilled by “Remittance Payment Company” (RPC). This law requires such companies to disclose quite a lot of information about money transactions, which at times is difficult to disclose. This is where Bitcoin as a currency and system collides head-on with the law. Bitcoin is not a centralized system but is a decentralized computer network but, a RPC nonetheless as transactions are being carried out. Thus Bitcoin violates the law. The duo asked the presenter what it meant for Bitcoin and what could be the implications? The presenter said, “well, if the regulators don’t like what Bitcoin is doing, it’s very possible they could come after you.” To this Voorhees replied that there was no “you”. On this the counsel said in that case the law would go after the server farms and the infrastructure. This is where it gets more interesting. There are no server farms and no infrastructure. An individual is in charge of his BTC and he relinquishes control as and when he decides and it all happens through a decentralized system. The legal counsel had no clue as to the fact that there were no ‘sever farms’ to seize.
DEAL: For $25 - Add A Second Phone Number To Your Smartphone for life! Use promo code SLASHDOT25. Also, Slashdot's Facebook page has a chat bot now. Message it for stories and more. Check out the new SourceForge HTML5 internet speed test! ×