Lawsky’s new bitcoin rules are spying on users

[bornil267645]

Ben Lawsky is having a hard time winning over the bitcoin crowd.

ShapeShift, a Switzerland-based exchange for digital currencies, slammed the outgoing Department of Financial Services superintendent over new regulations for operating a bitcoin exchange in the Empire State.

Lawsky’s BitLicense, which went into effect last month, collects an “Orwellian” amount of information on its users and creates a security risk, according to Erik Voorhees, ShapeShift’s founder and chief executive.

Voorhees, 31, likened Lawsky’s bitcoin crackdown to communist rule in North Korea.

“He’s certainly not as bad as Kim Jong Un,” Voorhees told The Post. “Does he require some of the same spying provision on his citizenry? Absolutely.”

The fierce response from Voorhees is a familiar refrain from bitcoin enthusiasts, many of whom have pushed back against attempts from states and the federal government to impose rules that would collect data on cryptocurrencies.

Bitcoin boosters succeeded in softening the DFS’s proposed regulations so that fewer companies, such as software developers, will require a license to operate in the state.

The problem, according to Voorhees, is that the regulations “re-connect” personal information to transactions that would otherwise be anonymous, creating a cybersecurity risk.

While the DFS isn’t likely to budge from its position, Voorhees said, the protest could influence other states to take a more laissez-faire attitude.

“I’m hoping for it to be a conversation,” he said. “I don’t think the Department of Financial Services will listen to our arguments at all.”

Lawsky is planning to step down later this month after four years atop the DFS to start his own consulting firm — including advising companies on bitcoins.

[melody82]

So in other words he just made it so that no one in their right mind will have a bitcoin business in new york?  Honestly I don't see why someone wouldn't move to maine or better yet out of the country all together.  This is an interesting development, I didn't realize that it effected user safety in this way.  It would be like if you could go look up money transfers to find out who to rob this week.  I seriously hope that us regulators think about removing their heads from their rectums, at least when it comes to bitcoins (and letting banks get away with murder).