aetos (OP)
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May 15, 2013, 07:22:44 PM |
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US Government Begins BitCoin Crackdown Tyler Durden's picture Submitted by Tyler Durden on 05/15/2013 14:02 -0400 European Central Bank As we first noted here (regulation) and here (supervision), the US government has been gradually encroaching on the independence and freedom of the virtual currency. This week, as The Washington Post reports, the government escalated. The feds took action against Mt. Gox, the world’s leading Bitcoin exchange. Many people use Dwolla, a PayPal-like payment network, to send dollars to their Mt. Gox accounts. They then use those dollars to buy Bitcoins. On Tuesday, Dwolla announced that it had frozen Mt. Gox’s account at the request of federal investigators. It’s the first federal action against the currency. CNet has confirmed that the asset seizure was initiated by Homeland Security Investigations (which among other things is responsible for enforcing the laws associated with money laundering and drug smuggling). As this crackdown begins, many argue that "you can’t put the genie back into the bottle," as far as shutting down the 'network' of open source transactions; but as one Bitcoin enthusiast added (sadly), "I hate to say it, but the Bitcoin community needs to start lobbying, it needs to start educating policymakers, lobbyists and influencers about the pros of Bitcoin and the impossibility or the difficulty in getting rid of all the bad uses." Considering the great antipathy the central planners have toward such legacy money as gold and silver, is it any surprise that they would move aggressively and rapidly to halt the emergence of yet another alternative to fiat, especially one which the ECB made it very clear will not be tolerated in an insolvent world. Because all is fair in preserving the FIATH... Via The Washington Post: ... Sen. Chuck Schumer (D-N.Y.) described Bitcoin as an “online form of money laundering” and called for the authorities to shutter the Bitcoin-based drug market Silk Road. Yet until recently, the feds have taken a relatively hands-off posture. ... That hands-off stance may have started to change this week when the feds took action against Mt. Gox, the world’s leading Bitcoin exchange. Many people use Dwolla, a PayPal-like payment network, to send dollars to their Mt. Gox accounts. They then use those dollars to buy Bitcoins. On Tuesday, Dwolla announced that it had frozen Mt. Gox’s account at the request of federal investigators. It’s the first federal action against the currency. CNet has confirmed that the asset seizure was initiated by Homeland Security Investigations, a division of Immigration and Customs Enforcement. Among other things, that agency has the power to enforce laws against money laundering and drug smuggling. ... Jerry Brito, a scholar at the libertarian Mercatus Center at George Mason University, urges federal regulators to tread lightly. “Bitcoin has the potential to be a boon to the economy and a boon to merchants,” he argues. ... Moreover, he says, “You can’t put the genie back into the bottle.” In his view, the federal government would have as much difficulty shutting down the Bitcoin network as major content companies have had shutting down peer-to-peer file sharing. A major crackdown would merely drive the network underground, where it would continue to be used for illicit transactions but would be off-limit to ordinary consumers. ... “I hate to say it, but the Bitcoin community needs to start lobbying,” he says. “It needs to start educating policymakers, lobbyists and influencers about the pros of Bitcoin and the impossibility or the difficulty in getting rid of all the bad uses.” source http://www.zerohedge.com/news/2013-05-15/us-government-begins-bitcoin-crackdown
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"I'm sure that in 20 years there will either be very large transaction volume or no volume." -- Satoshi
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mc_lovin
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www.bitcointrading.com
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May 15, 2013, 07:24:38 PM |
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I find their crackdown flattering.
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mr_random
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May 15, 2013, 07:29:37 PM |
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This is being blown out of proportion.
The only reason this happened is because Mtgox were foolish enough to lie and say they aren't a 'money transmitter' and try to operate without a license.
If they had the appropriate license this wouldn't have happened. A lesson to other exchanges in the future.
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phrozenspite
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May 15, 2013, 07:31:02 PM |
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Indeed. Lets not forget that bitcoins are being used on the silkroad as well. I think that probably has a lot to do with the scrutiny for money laundering
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RodeoX
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The revolution will be monetized!
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May 15, 2013, 07:34:35 PM |
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This is being blown out of proportion.
The only reason this happened is because Mtgox were foolish enough to lie and say they aren't a 'money transmitter' and try to operate without a license.
If they had the appropriate license this wouldn't have happened. A lesson to other exchanges in the future.
+1 Maybe this opens the door for a legitimate business.
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Nolo
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May 15, 2013, 07:36:20 PM |
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This is being blown out of proportion.
The only reason this happened is because Mtgox were foolish enough to lie and say they aren't a 'money transmitter' and try to operate without a license.
If they had the appropriate license this wouldn't have happened. A lesson to other exchanges in the future.
This cannot be said enough. The government has had previous chances to go after BTC and has declined. They are only targeting a company that broke the law with this warrant. If Mt. Gox is smart (which that's debatable), they'll immediately reach a deal with the government, in which they agree to properly register and pay whatever penalties/fines are assessed. The government is NOT going after BTC. Atleast not yet.
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Charlie Kelly: I'm pleading the 5th. The Attorney: I would advise you do that. Charlie Kelly: I'll take that advice under cooperation, alright? Now, let's say you and I go toe-to-toe on bird law and see who comes out the victor? The Attorney: You know, I don't think I'm going to do anything close to that and I can clearly see you know nothing about the law. 19GpqFsNGP8jS941YYZZjmCSrHwvX3QjiC
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BrewCrewFan
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May 15, 2013, 07:39:07 PM |
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O god. You think the shit is fucked up now just WAIT until the Governments start getting involved. It will become one big old clusterfuck. Regulations.
You... dont... want this to happen.
And coming from this guy Sen. Chuck Schumer (D-N.Y.)... I would not waste my spit on this guy ( sorry NYers... after all you gots nanny bloomy too hows your big gulps LOL )
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pekv2
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May 15, 2013, 07:39:16 PM |
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Lets not forget that bitcoins are being used on the silkroad as well.
Drug dealers on the streets don't use credit card machines to have money deposited into their bank accounts exchanged with drugs? Or, lets go this route, USD cash is not being used on the streets of USA for drugs? btc=cash silkroad=streets One thing I would imagine, silk road is safer to shop from, rather being shot for your five bucks for a hit of blow, rock, nick sack of weed. I wonder how far the percentage has fallen of the murder rate since silk road.
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hashman
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May 15, 2013, 07:40:10 PM |
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The only reason this happened is because Mtgox were foolish enough to lie and say they aren't a 'money transmitter' and try to operate without a license.
If they had the appropriate license this wouldn't have happened. A lesson to other exchanges in the future.
Small correction, it was Mutum Signium that didn't have the license.
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BrewCrewFan
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May 15, 2013, 07:40:13 PM |
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This is being blown out of proportion.
The only reason this happened is because Mtgox were foolish enough to lie and say they aren't a 'money transmitter' and try to operate without a license.
If they had the appropriate license this wouldn't have happened. A lesson to other exchanges in the future.
This cannot be said enough. The government has had previous chances to go after BTC and has declined. They are only targeting a company that broke the law with this warrant. If Mt. Gox is smart (which that's debatable), they'll immediately reach a deal with the government, in which they agree to properly register and pay whatever penalties/fines are assessed. The government is NOT going after BTC. Atleast not yet. Give it time. This is tax money right here. You know the gov is licking their chops at the thoughts of extra money into the pet projects that they can piss away.
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BrewCrewFan
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May 15, 2013, 07:41:22 PM |
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Lets not forget that bitcoins are being used on the silkroad as well.
Drug dealers on the streets don't use credit card machines to have money deposited into their bank accounts exchanged with drugs? Or, lets go this route, USD cash is not being used on the streets of USA for drugs? btc=cash silkroad=streets One thing I would imagine, silk road is safer to shop from, rather being shot for your five bucks for a hit of blow, rock, nick sack of weed. No just their way to justify whatever they are planning on doing.
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Scott J
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May 15, 2013, 07:41:33 PM |
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This is being blown out of proportion.
The only reason this happened is because Mtgox were foolish enough to lie and say they aren't a 'money transmitter' and try to operate without a license.
If they had the appropriate license this wouldn't have happened. A lesson to other exchanges in the future.
THIS X 1337
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willhash4food
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May 15, 2013, 07:41:48 PM |
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Fuck Tyler Durden. He doesn't even trade crypto.
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They see me minin'... they hatin'...
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pekv2
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May 15, 2013, 07:43:09 PM |
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Lets not forget that bitcoins are being used on the silkroad as well.
Drug dealers on the streets don't use credit card machines to have money deposited into their bank accounts exchanged with drugs? Or, lets go this route, USD cash is not being used on the streets of USA for drugs? btc=cash silkroad=streets One thing I would imagine, silk road is safer to shop from, rather being shot for your five bucks for a hit of blow, rock, nick sack of weed. No just their way to justify whatever they are planning on doing. Exactly, this is why I make my point. It's utterly fucking bullshit.
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pizza
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May 15, 2013, 07:45:03 PM |
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Fuck tyler durdan he only exists for about 1.5 hours when i press play on the DVD. And it's not a crackdown but typical overhyped zerohedge style. It's because dumbass Mt.gox doesn't want to register properly, than senor Mt.Gox you will get fucked, simple as that.
They are not in the US so they don't have too, but then they can't do business with US customers.
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BrewCrewFan
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May 15, 2013, 07:46:11 PM |
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Lets not forget that bitcoins are being used on the silkroad as well.
Drug dealers on the streets don't use credit card machines to have money deposited into their bank accounts exchanged with drugs? Or, lets go this route, USD cash is not being used on the streets of USA for drugs? btc=cash silkroad=streets One thing I would imagine, silk road is safer to shop from, rather being shot for your five bucks for a hit of blow, rock, nick sack of weed. No just their way to justify whatever they are planning on doing. Exactly, this is why I make my point. It's utterly fucking bullshit. If there is one thing I have learned in my 35 years of life... is that the Gov never usually has the "best intrests" in mind. Granted, they might seem good, but once you start getting the bureaucratic crap involved it becomes one big clusterfuck. Its funny this reminds me of the Building inspectors bumper sticker here in town ( I live in a relatively small town ) and it says " do you have a permit for that?"
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aetos (OP)
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May 15, 2013, 07:48:26 PM |
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O god. You think the shit is fucked up now just WAIT until the Governments start getting involved. It will become one big old clusterfuck. Regulations.
You... dont... want this to happen.
And coming from this guy Sen. Chuck Schumer (D-N.Y.)... I would not waste my spit on this guy ( sorry NYers... after all you gots nanny bloomy too hows your big gulps LOL )
+10000 as new yorker i know cant say more but one can understand when the phrase : we have the best gov MONEY CAN BUY: comes from enough said..
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Number6
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May 15, 2013, 07:48:40 PM |
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This is being blown out of proportion.
The only reason this happened is because Mtgox were foolish enough to lie and say they aren't a 'money transmitter' and try to operate without a license.
If they had the appropriate license this wouldn't have happened. A lesson to other exchanges in the future.
This cannot be said enough. The government has had previous chances to go after BTC and has declined. They are only targeting a company that broke the law with this warrant. If Mt. Gox is smart (which that's debatable), they'll immediately reach a deal with the government, in which they agree to properly register and pay whatever penalties/fines are assessed. The government is NOT going after BTC. Atleast not yet. Exactly! For starters, MtGox ≠ Bitcoin. If anyone read the warrant, it is clearly intended to go after MtGox because of their failure to comply with US law, when they established US bank accounts, and planned to do business in US currency with US citizens. If this were to happened to Jo Blow's Brokerage house, it would merely get a back page mention, as this type of stuff happens everyday. If anything, this makes me more confident in the future of Bitcoin, as exchanges will be more inclined to follow the laws in the countries they plan to operate within. It amazes me that when a government steps in to ensure the customer is protected, everyone goes all crazy. Who would you trust more, a government enforcing its clearly identified laws to protect customers of financial institutions from fraudulent activity, or some schmuck based in another country who lies on business applications and has questionable business dealing with other companies?
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BTC: 18jdvLeM6r943eUY4DEC5B9cQZPuDyg4Zn LTC: LeBh9akQ3RwxwpUU6pJQ9YGs9PrC1Zc9BK
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aetos (OP)
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May 15, 2013, 07:49:11 PM |
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Lets not forget that bitcoins are being used on the silkroad as well.
Drug dealers on the streets don't use credit card machines to have money deposited into their bank accounts exchanged with drugs? Or, lets go this route, USD cash is not being used on the streets of USA for drugs? btc=cash silkroad=streets One thing I would imagine, silk road is safer to shop from, rather being shot for your five bucks for a hit of blow, rock, nick sack of weed. I wonder how far the percentage has fallen of the murder rate since silk road. lol they buy pre paid cards
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aetos (OP)
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May 15, 2013, 07:50:40 PM |
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instead of them going after pre paid cards where one can buy amex pre paid and go anywhere they want in the world they go after these coins.... one said best money laundering scheme is pre paid credit cards you can carry way beyond the 10k limit out of any country
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