[2016-08-19] California Lawmaker: Bitcoin Thefts Show Industry Regulation Needed

[tyz]

California Lawmaker: Bitcoin Thefts Show Industry Regulation Needed

The state assemblyman behind efforts to regulate digital currency businesses in California cited the $65m hack of Bitfinex this week as evidence of the need for tighter industry controls.

http://www.coindesk.com/california-lawmaker-bitfinex-regulation-needed/

[Kprawn]

Yes, so tight that it ends up like the poor efforts done by the BitLicense crew in New York. Regulation will not stop hackers from attacking centralized services with idiots at the wheel. It will also not stop

people from working with these hackers to steal these funds. How many banks are heavily regulated, but they still have people on the inside informing criminals on the working of the system.  Let

there be harsh penalties for these thefts and also huge insurance coverage to protect the consumers and losses will be severely reduced. 

[Carlton Banks]

Um, someone ought to let this state assembly member know that Bitfinex is incorporated in Hong Kong, not California, this sort of talk is the height of ignorance from someone whose professional vocation demands the opposite: he should be knowledgeable and wise to do the job he purports to do. If he does know that Bitfinex is out of Californian jurisdiction, the charge is, of course, arrogance instead. Typical US political establishment either way.

The reality is that technology, not threats and theft, will solve this problem. Decentralised exchanges have been slowly developing, and once they're suitably mature technologically (and the liquidity on their exchanges are sufficient), we can forget about this problem.

[panju1]

The importance is finding a balance between regulation and freedom for businesses to grow.
Unfortunately, our politicians are not very adept at finding this and tend to over-legislate.

[Carlton Banks]

The importance is finding a balance between regulation and freedom for businesses to grow.
Unfortunately, our politicians are not very adept at finding this and tend to over-legislate.

Why should threats of violence and theft be the factor that determines behaviour in the marketplace? I'm not sure that people who say this sort of thing understand the philosophy of Bitcoin's existence.

[scyth3]

We don't need bureaucrats to make regulations. The free market is the best regulator.