ShapeShift Leaves New York, Choosing Not to Comply with BitLicense

[smashingpumpkin]

ShapeShift, a popular cryptocurrency exchange based in Switzerland, terminated its services in New York today,
due to the state’s BitLicense regulations for digital currencies - Erik Voorhees, Shapeshift Founder and CEO says.

This makes no sense - the law is not supporting business which would pay taxes, but to the contrary makes it leave the country - isn't it stupid?

[jonald_fyookball]

I thought shapeshift requires no account.  so is it going to do an ip geo lookup and tell New Yorkers to scram?  and then, couldn't they just access it anyway via tor?

[BitUsher]

I thought shapeshift requires no account.  so is it going to do an ip geo lookup and tell New Yorkers to scram?  and then, couldn't they just access it anyway via tor?

Yes, it checks the IP range and redirects to this site - http://pleaseprotectconsumers.org

It is great they are taking a principled stand and warning consumers and refusing to follow the guidelines. New Yorkers can use a VPN to use shapeshift, while having the privacy protected.

[mikewirth]

I thought shapeshift requires no account.  so is it going to do an ip geo lookup and tell New Yorkers to scram?  and then, couldn't they just access it anyway via tor?

Yes, it checks the IP range and redirects to this site - http://pleaseprotectconsumers.org

It is great they are taking a principled stand and warning consumers and refusing to follow the guidelines. New Yorkers can use a VPN to use shapeshift, while having the privacy protected.

New York deserves the hate and distain that is soon to be directed towards it.  This idea that the police can look around in your underwear drawer - before you do something wrong is absurd.  Ben Lawski thinks he is protecting customers.  In fact, he is merely annoying entrepreneurs who understand there is no way a start up should be spending large portions of the budget preparing stupid paper for government regulators to put their stamp on.  Fortunately, those entrepreneurs don't want to sit around and talk about it with them either - they rather just pack it up and leave.  

California is next.  $5000 to 'register' as a crypto company doing business.  What kind of a 'register' (database) needs $5000 for an entry?  This is just another stupid tax.  So many really great start ups can move their project ahead pretty far on those $5000.  To a government official, $5000 is nothing.  To a bootstrap entrepreneur it is a load of money.  

I am in discussions with my partners now.  We decided we will not organize in California.  Its not precisely the $5000 - it is whatever comes next that we don't know about.  

The FinCen lady Calvary said it best: the laws against fraud and money laundering are pretty effective already.  We don't need new laws.  We can just use the old laws to stop bad actors.  But some fools see a new 'denomination' and they jump at the chance to levy a new tax scheme.  

Leave it to the government to smother a tiny spark of innovation with more tax.  Lawski = idiot.  I am glad he got fired.  Now NY ought to throw his stupid crypto plan in the shitcan too - before ten more companies like ShapeShift cut NY out of the picture entirely.  

[jeannemadrigal2]

Cheers to Shapeshift!  This is what we need from our companies to fight stupid regulations.

And Mike, the 5000$ in California is much worse than just a tax, it is specifically designed to have a chilling effect on bitcoins.  But it makes no sense because businesses will just set up shop elsewhere.  I think the biggest impact is on small startups that want to use bitcoins.  Not all businesses consider 5k a small fee.  Also if I read the law correctly this would even stop people from running a small website to sell things, or sell on ebay or amazon for coins.  This rule is not just a tax, it is yet another law bought by special interests.  And you are right, the future of crypto regulation is very murky.  Best of luck with your business Mike!

[mikewirth]

It would be a coup of epic proportions if Switzerland would say: 'to any formerly California company: if you move to Switzerland we will provide you 12 months free post box office, business shell entity, and $5000'.  They would be able to 'buy' so many great cryptocompanies with this trick.  They would benefit tremendously over the coming 20 years with the goodwill from having all these new clean white collar businesses.  AND it totally fits with their mentality as the Swiss have long been in favor of 'hands off' banking laws.  Switzerland is poised to totally blow California out of the water.  

[TKeenan]

So who is going to pay Super Nintendo's annual salary if Voorhees and friends refuse to pay for protection?

Exactly.  NY is a filthpit.  Voorhees didn't leave because of bitlicense, he left because Mario and his friends have been running that extortion racket known as Wall Street and the stock exchange for years.  Napster replaced the entire music industry, now bitcoin is going to replace NewYork.  ...and New York thinks they are going to 'regulate' that?  Hahahahah!

New York wants to 'regulate' Bitcoin : Bitcoin wants to eliminate NY.  Who do you think will win?

[Kprawn]

You have to weigh up your options... If they are hostile against your business and implement shitty regulations to stop innovation... then just pull the roots and move to a Bitcoin friendly environment.

While you are there, you are just feeding them your taxes and in return they are killing your innovation.

Support a Bitcoin friendly country or state.... You will be much better off, in the long term. Those people will go down with their regulations in future. 

[Amph]

New York wants to 'regulate' Bitcoin : Bitcoin wants to eliminate NY.  Who do you think will win?

it does not matter if newyork will win, it's not like newyork is the center of the world, bitcoin can find its place in many other countries, this is the beauty of having many countries and each of it with its own regulation

[turvarya]

I like, how when you scroll down on the website http://pleaseprotectconsumers.org/ you see the 2 jurisdictions, where they blocked them self: North Korea and New York.

[Oscilson]

You have to weigh up your options... If they are hostile against your business and implement shitty regulations to stop innovation... then just pull the roots and move to a Bitcoin friendly environment.

While you are there, you are just feeding them your taxes and in return they are killing your innovation.

Support a Bitcoin friendly country or state.... You will be much better off, in the long term. Those people will go down with their regulations in future. 

I agree with this totally. Do not feed the people hostile to you.

[JackRipper]

New York wants to 'regulate' Bitcoin : Bitcoin wants to eliminate NY.  Who do you think will win?

it does not matter if newyork will win, it's not like newyork is the center of the world, bitcoin can find it's place in many other country, this is the beauty of having many countries and each of it with its own regulation

In many ways, New York IS the financial center of the world. Because of the globalization of the economy, it is less so than in the past, but it is still the center. Perhaps as time passes, that center will shift. But for now, it is still New York.

[TKeenan]

New York wants to 'regulate' Bitcoin : Bitcoin wants to eliminate NY.  Who do you think will win?

it does not matter if newyork will win, it's not like newyork is the center of the world, bitcoin can find it's place in many other country, this is the beauty of having many countries and each of it with its own regulation

In many ways, New York IS the financial center of the world. Because of the globalization of the economy, it is less so than in the past, but it is still the center. Perhaps as time passes, that center will shift. But for now, it is still New York.

Really?  Go ask the music industry.  Go ask any ex newspaper journalist.  Go ask a postal employee.  Go ask Kodak film company.  These guys all thought they were 'still on top' - long after they had been fully replaced.

New York was the clear boss 50 years ago.  That shit is so over.

[blablaace]

i applaud them .. the bitlicense is a friggin joke!

[Oscilson]

Really?  Go ask the music industry.  Go ask any ex newspaper journalist.  Go ask a postal employee.  Go ask Kodak film company.  These guys all thought they were 'still on top' - long after they had been fully replaced.

New York was the clear boss 50 years ago.  That shit is so over.

With P2P, with bitcoin, finance can be done any where, not necessary centralized in New York. I would be interested in seeing what NY will be in 30 year's time.

[TKeenan]

Really?  Go ask the music industry.  Go ask any ex newspaper journalist.  Go ask a postal employee.  Go ask Kodak film company.  These guys all thought they were 'still on top' - long after they had been fully replaced.

New York was the clear boss 50 years ago.  That shit is so over.

With P2P, with bitcoin, finance can be done any where, not necessary centralized in New York. I would be interested in seeing what NY will be in 30 year's time.

you won't have to wait that long.  It'll all be pretty much done in about 3 years.
Those NY Guidos are totally gone.  Banks are next.  You can thank Patrick Byrne in part for taking a nice early lead - despite the fact that he is a total weirdo.

[Aswan]

Meh, the article says shapeshift doesnt want to collect private information because the want to protect their customers but then they store addresses, IPs etc. and say they are going to provide this information to authorities is asked for them....
Come on shapeshift, either commit to protecting user information by not even logging IPs and addresses if not needed or don't, but don't say you wan to protect user information and then do this kind of thing...

[Argwai96]

why is new york the first state to create this type license?, it feels more like a roadblock then a gain to the bitcoin business.

[Amph]

why is new york the first state to create this type license?, it feels more like a roadblock then a gain to the bitcoin business.

because the mining activity started in the USA first, and they probably see newyork as a central hub for bitcoin regulation

[Snorek]

why is new york the first state to create this type license?, it feels more like a roadblock then a gain to the bitcoin business.

They want to control bitcoin, they want to control business, they don't believe people can be on their own capable of choosing what is good for them - hence the regulations.
New York laws are stupid they want to regulate EVERYTHING ,to the point you can't buy Coca-Cola in larger bottles because it is not healthy - you can't do that to people. Let them decide!