New York State and the Bitlicense

[tarzan2]

So my state has this special law that makes it considerably more complex and costly for crypto-related business to operate. Personally I believe it's because they see crypto as a direct challenge to the financial institutions in the state. Anyway, a few years ago I was fucking around on this site and ended up losing about $2500 in bitcoin to someone in a scam. Fortunately, I was able to get the person's IP address, real name, address, and eventually their facebook. They lived about an hour away in New Jersey. One of the first things I then did was call the NYPD and report the person, obviously. NY has the most bitcoin regulation in the country.

A detective and a uniform showed up at a my apartment and I had to handhold them through basic shit like skype conversations and forum DMs. I guess the scary block explorer where dollar amounts are clearly delineated is hard for some poeple. I just needed them to go arrest someone and get my money back. Even if they didn't really trust me and my judgement there was a suspect with zero work on their part. I handed them all the evidence I had including transactions and conversations. This guy would shitpost on facebook about getting that money with lots of pics in Atlantic City.

Anyways the cops heard bitcoin called their boss and got permission to bounce.

I didn't even get a pretend investigation like when your moms looks under the bed for the boogeyman.

Usually regulation is supposed to mean protection or at least that's what is said. I guess they protected the Winklevoss kids from competition.
Ultimately the point I'm trying to make is Bitlicense=Bullshit.

[Upgrade00]

Usually regulation is supposed to mean protection or at least that's what is said.

Regulation actually usually means control, the government recognizes their inability to influence Bitcoin and use regulatory means to exert a bit of control over the market and to get revenues from tax paid on Bitcoin investment.
The governments are basically trying to protect themselves, in the guise of preventing the citizens from making a wrong financial decision.

[pooya87]

Sorry but your post makes no sense. It has nothing to do with Bitlicense, heck it has nothing to do with bitcoin itself.
First of all Bitlicense is a business license issued to companies who want to enter what NYSDFS refers to as "virtual currency activities". It has nothing to do with user protection against scams.

Secondly I don't know anywhere in the world where the cops trust what they see on your computer screen and go catch the other guy just because you said so! First there has to be a court order sent to these platforms (Skype, Facebook,etc.) and THEY should confirm your claims are real (said conversations actually exist on their platform) and you aren't making stuff up on your computer (since that is trivial to do). Then the claims have to be checked to see if the scam did occur and then go catch the scammer.

You can experiment with something else like PayPal, if some day you got scammed out of your PayPal dollars and did the same thing the detective would do the exact same thing.

[Yogee]

I cannot tell if you have a business that's engaged in the following crypto related activities,
- Virtual currency transmission.
- Storing, holding, or maintaining custody or control of virtual currency on behalf of others.
- Buying and selling virtual currency as a customer business.
- Performing exchange services as a customer business.
- Controlling, administering, or issuing a virtual currency.

If you are not in a business and you only traded on your individual capacity, then you are barking at the wrong tree since BitlLicense does not cover individual trades.

You can read more at https://coiniq.com/what-is-the-bitlicense/

[lifeforcepools]

Regulation actually usually means control, the government recognizes their inability to influence Bitcoin and use regulatory means to exert a bit of control over the market and to get revenues from tax paid on Bitcoin investment.
The governments are basically trying to protect themselves, in the guise of preventing the citizens from making a wrong financial decision.

In fact, this is not always a bad thing. After all, regulation and licensing can attract many new people who are afraid to take risks and therefore do not want to invest in crypto.