NY regulator issue subpoenas to firms tied to Bitcoin: WSJ

[Wagner2014]

Why subpoenas if they just want dialogue? Seems heavy handed. And will the market react?

NY regulator issue subpoenas to firms tied to Bitcoin: WSJ

(Reuters) - New York's top banking regulator has issued subpoenas to several companies associated with Bitcoin as part of an inquiry into business practices of the virtual currency industry, the Wall Street Journal reported, citing people familiar with the matter.

The subpoenas issued by the New York Department of Financial Services (DFS) seek information on antimoney laundering programs, consumer protection measures and investment strategies among other topics, the Journal said.

Companies that received subpoenas include Coinbase Inc, BitInstant and Coinsetter, the newspaper said.

http://www.reuters.com/article/2013/08/12/us-digitalcurrency-subpoena-bitcoin-idUSBRE97B03720130812

[1714870586]

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[joesmoe2012]

And the fun begins.

[crazy_rabbit]

It's a good thing. We want Bitcoin always in the news and having governments be interested in us is fantastic. Oh I remember the years ago......

[runam0k]

They just want to be sure that if bitcoin becomes big enough, their banker bosses can exercise a sufficient degree of control and profit extraction from it, nothing more.

[Gabi]

And so it begins

[rocks]

The FEDs want 100% visibility into the transfer of fiat to and from BTC.

This will happen in the end, there is no way around it. This is also why firms such as coinbase are moving towards full compliance with FED rules.

In the end however, all this does is legitimize Bitcoin. There is nothing inherently illegal with it, so the FEDs just want their tax money and to stop any possibility of using it for money laundering, purchasing drugs, etc.

As long as your interest in bitcoin is for legal reasons, and there are plenty, then none of this matters.

[Walsoraj]

Well, this IS a problem if bitcoin's backbone is illegal activity. You guys really think the price would be 1/10th of what it is now without the silk road, money laundering and obvious price manipulation? lolol. 

[Walsoraj]

Well, this IS a problem if bitcoin's backbone is illegal activity. You guys really think the price would be 1/10th of what it is now without the silk road, money laundering and obvious price manipulation? lolol. 

The backbone of the entire banking economy was illegal activity at one point in time. It just got institutionalized.

And so it goes.

the bankers can afford to lobby congress. bitcoiners cannot.

improper analogy.

[UPENtXF]

The FEDs want 100% visibility into the transfer of fiat to and from BTC.
This will happen in the end, there is no way around it. This is also why firms such as coinbase are moving towards full compliance with FED rules.
In the end however, all this does is legitimize Bitcoin. There is nothing inherently illegal with it, so the FEDs just want their tax money and to stop any possibility of using it for money laundering, purchasing drugs, etc.
As long as your interest in bitcoin is for legal reasons, and there are plenty, then none of this matters.

Are you still in elementary school, or are you just here astroturfing for the banks and regulators? 

They haven't even been able to stop the possibility of using USD for "money laundering, purchasing drugs, etc", after pretending to try for longer than you've been alive! Little, if any of that money will go through the regulated exchanges, and they already know that bitcoin is not anonymous at all with "100% visibility", compared to their paper!

Open your eyes: all this is about is protecting their cash-cow constituency - the incumbent banking and payment industry - from competition!

[ElectricMucus]

This could mark the beginning of the longer multi-year bear market.

[Ares]

This could mark the beginning of the longer multi-year bear market.

This could also mark the beginning of removing legal uncertainty in Bitcoin and the beginning of one of the strongest bull markets of all time.

[majamalu]

This could mark the beginning of the longer multi-year bear market.

The last time you predicted a bear market, we were reaching 2, and just about to bounce.

[Kaiji]

I agree that they just want their tax money. Also its in the nature of governments to regulate everything people do partly to protect us from fraud. Bitcoin is so self sustaining there really is no need for regulation, no need to have to waste tax money on bureaucrats and institutional oversight.

As for money laundering, billions upon billions have been laundered and are still being laundered quite easily I might add all over the world with no one doing anything. I'm afraid that they will use bitcoin as a scapegoat for their failings in stopping money laundering. The same way they use video games as a scapegoat for youth violence and murder.

So far there have been no open plans to shut bitcoin down. I suspect that there are people in power who are intrigued at the ingenuity of bitcoin and are busy studying it. After all innovation and invention is what made the modern world as it is today.

[STT]

This could also mark the beginning of removing legal uncertainty in Bitcoin and the beginning of one of the strongest bull markets of all time.

That is more likely becase bitcoin only really has worth if it is a global currency.  If its the same as everything else, tied to political negotiation with the usual drags of taxes and debasement we might as well stick with cotton dollars

[ElectricMucus]

This could mark the beginning of the longer multi-year bear market.

The last time you predicted a bear market, we were reaching 2, and just about to bounce.

That's true, but this time there is a reason.

[prophetx]

Why subpoenas if they just want dialogue? Seems heavy handed. And will the market react?

NY regulator issue subpoenas to firms tied to Bitcoin: WSJ

(Reuters) - New York's top banking regulator has issued subpoenas to several companies associated with Bitcoin as part of an inquiry into business practices of the virtual currency industry, the Wall Street Journal reported, citing people familiar with the matter.

The subpoenas issued by the New York Department of Financial Services (DFS) seek information on antimoney laundering programs, consumer protection measures and investment strategies among other topics, the Journal said.

Companies that received subpoenas include Coinbase Inc, BitInstant and Coinsetter, the newspaper said.

http://www.reuters.com/article/2013/08/12/us-digitalcurrency-subpoena-bitcoin-idUSBRE97B03720130812

relax guys they just want to know how wall street bankers will snort coke in the bathrooms of GS with a rolled up bitcoin...

[Zaih]

yawn

[majamalu]

This could mark the beginning of the longer multi-year bear market.

The last time you predicted a bear market, we were reaching 2, and just about to bounce.

That's true, but this time there is a reason.

This time is different. 

[Chalkbot]

This could mark the beginning of the longer multi-year bear market.

The last time you predicted a bear market, we were reaching 2, and just about to bounce.

That's true, but this time there is a reason.

Don't be too hard on ElectricMucus. He selflessly performs an invaluable service.

Also, if you end up in an argument with him, you will quickly regret it.

[ElectricMucus]

Muahahaha


Seriously I haven't predicted anything. There are simply too many unkowns and possible scenarios this can play out.
One of these scenarios would be that is becomes more difficult to trade Bitcoins for Dollars which would discourage many investors. If that doesn't happen, well good.

I just don't wanna hear: "No one could have expected this, derp"