New Jersey Ban on Bitstrade pushes the price further down

[fiulpro]

Hello peeps, well maybe everyone is already aquainted with the news where new jersey banned Bitstrade.
It was an online investing site which was mostly Bitcoins based and promised 10% returns gaurenteed
Government found it suspicious and decided to ban it, the major reason was ' it was unregistered with the government '
Isn't government regulating it a bit on a higher scale?
Is Bitcoins gonna be decentralized now?

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[rlim475]

Bitstrade was issued a cease and desist order because it was not in compliance with the law. They were offering what is considered by law to be a security without the proper licenses to do so.

Companies being shut down because they are not in compliance with the law is nothing new, they should be responsible and understand their legal obligations. At the core of every successful business is a good legal department.

This is nothing to do with government regulation because it is acting based on previously in place laws.

Bitcoin is already decentralised. I think you mean centralised, in which case no.

[stompix]

Hello peeps, well maybe everyone is already aquainted with the news where new jersey banned Bitstrade.
It was an online investing site which was mostly Bitcoins based and promised 10% returns gaurenteed
Government found it suspicious and decided to ban it, the major reason was ' it was unregistered with the government '

It was a scam!!!!
We just had a major one going bust with Bitconnect but fortunately in this case the loses won't be that bad.

And it wasn't closed just for "being suspicious" :

Regarding withholding information, the order makes specific reference to “failing to disclose key material facts to prospective investors, including the names of its executive officers, the address of its principal office, information about Bitstrade's financial condition, the risks of the Bitstrade Investment, and how Bitstrade invests investors’ money, the Bureau found.”

What more do you want?

Is Bitcoins gonna be decentralized now?

Bitstrade has nothing to do with BTC, BTC was decentralized , is decentralized and will be decentralized.

[tophe15]

Hello peeps, well maybe everyone is already aquainted with the news where new jersey banned Bitstrade.
It was an online investing site which was mostly Bitcoins based and promised 10% returns gaurenteed
Government found it suspicious and decided to ban it, the major reason was ' it was unregistered with the government '

It was a scam!!!!
We just had a major one going bust with Bitconnect but fortunately in this case the loses won't be that bad.

And it wasn't closed just for "being suspicious" :

Regarding withholding information, the order makes specific reference to “failing to disclose key material facts to prospective investors, including the names of its executive officers, the address of its principal office, information about Bitstrade's financial condition, the risks of the Bitstrade Investment, and how Bitstrade invests investors’ money, the Bureau found.”

What more do you want?

Is Bitcoins gonna be decentralized now?

Bitstrade has nothing to do with BTC, BTC was decentralized , is decentralized and will be decentralized.

Agree with what you said there, it might be really a scam, there are already a lot of sites that offers 10% guaranteed increase return of investment, like auroramine, which seems a good site at all and later went into the dark side with no traces to be found.

[IndzheborgC]

They registered the site in the US, for greater trust among investors. If they were registered in Costa Rica, they would not be closed, but investors would not go to them.

[Sendibere]

They just want to make sure that investors tempted to cash in on the cryptocurrency rage aren’t being lured into sending funds to an anonymous Internet entity without knowing where the funds are going or how they’ll be used.

[Gulayman]

Bitstrade, which claims to take customers’ Bitcoin and invest the funds in the stock market, had been offering the equivalent of securities, but had not registered with the New Jersey government. But it's wares outside of the state.

[audaciousbeing]

Hello peeps, well maybe everyone is already aquainted with the news where new jersey banned Bitstrade.
It was an online investing site which was mostly Bitcoins based and promised 10% returns gaurenteed
Government found it suspicious and decided to ban it, the major reason was ' it was unregistered with the government '
Isn't government regulating it a bit on a higher scale?
Is Bitcoins gonna be decentralized now?

Every business has its on Memorandum that states the business its operating in and if there is going to be any change in such principal activity, there are proper ways to go about it. Bitstrade has been in business before this time and there has been no issue which means, its going beyond what is being registered to do and that is where the problem starts. There is need for sanity in the system and for the fact that government does not want to regulate cryptocurrency does not mean a registered exchange platform, should start offering a form of mutual fund services for example. While both are financial services, their specifics requirements in different jurisdiction are different. Its within the line of what government is doing and I don't think that is what is responsible for bitcoin price going down.

[undeadbitcoiner]

“The Bureau found that Bitstrade is violating the State’s Uniform Securities Law by offering investors an unregistered security in the form of an investment pool that purportedly guarantees up to 10 percent returns which accrue daily on investor funds. Bitstrade is not registered to sell securities in New Jersey,”
That tells everything, Its simple if you are in US, for your personal buy and sell you don't need to be registered as business but still you need to report your gains and Looses to IRS are related authority, So in this case Bitstrade was not registered with Local Authority and Federal Authority. Not only in Crypto doing any business where sell and purchase execute ans where there is Profit and Loses execute as a company should be registered with all required authority so this is just illegal company nothing much.