NY BITCOIN LICENSE REGULATIONS ARE HERE

[notme]

You can't show us a little of what your link is? I don't click on random pdf files.

It's a .gov site.

Right, because we should trust every government employee that can upload to a webserver .

Do you have any idea how many government workers there are out there who know nothing about computer security?  Even without a malicious actor, the PDF could become infected if the producer's PC was infected.  As someone who did tech support for many government entities back in the day, I can assure you that government workers frequently manage to infect their computers.  Trusting it just because it is from a .gov site is foolish.

[the_sunship]

They are trying to take bitcoin out of the "dark web". Not sure it will work since we have mixers and dark wallet, for example. If it gives bitcoin more legitimacy for billion dollar investment types, I don't think it's a bad thing. Users who want anonymous transactions with bitcoin will find a way. The state has to at least pretend it can do something about it.

Lawsky seems to really like bitcoin, so I think some compromises with the community will be forthcoming.

[alexeft]

Since I didn't really read the thing, does it really say that bitcoins that haven't moved for 5 years become the property of the state? Exactly how is that supposed to happen?

[Hunyadi]

This changes nothing. Only news is that we might be on the news, lol.

History will prove you wrong, friend.

This changes the game... for... who? Businesses and financial institutions in the world's #1 financial hub.

This means existing financial entities are getting the necessary go-ahead from regulators.

This means they are getting an onboarding path for working with Bitcoin.

This means Financial technology startups are going to base out of New York instead of California.

Less than a year ago, before the senate hearings, Bitcoin being effectively outlawed in the United States was totally plausible.

And now look where we are...

Maybe nothing changes to you, right now, but in the big picture of things, this is as crucial as it gets.

+1

This is very good news for the Wallstreet.

[BitchicksHusband]

Since I didn't really read the thing, does it really say that bitcoins that haven't moved for 5 years become the property of the state? Exactly how is that supposed to happen?

You open a Coinbase account.  You have bitcoins on there.  You don't touch them for 5 years.  The government forces Coinbase to follow their existing escheatment laws and send them the money (assuming you are a resident of NY).  This already happens with your bank accounts.  I had one with a few bucks in it that I hadn't used for years.  They sent me a letter that said in 60 days they were sending it to the state.  I had to call and "reset the clock".

Obviously, nobody can seize bitcoins that you hold yourself.

[alexeft]

Since I didn't really read the thing, does it really say that bitcoins that haven't moved for 5 years become the property of the state? Exactly how is that supposed to happen?

You open a Coinbase account.  You have bitcoins on there.  You don't touch them for 5 years.  The government forces Coinbase to follow their existing escheatment laws and send them the money (assuming you are a resident of NY).  This already happens with your bank accounts.  I had one with a few bucks in it that I hadn't used for years.  They sent me a letter that said in 60 days they were sending it to the state.  I had to call and "reset the clock".

Obviously, nobody can seize bitcoins that you hold yourself.

Hmmm, I see! I think that's not bad! We should be using the blockchain instead of eg goxcoins, ious and whatnot!

[Ibian]

Since I didn't really read the thing, does it really say that bitcoins that haven't moved for 5 years become the property of the state? Exactly how is that supposed to happen?

You open a Coinbase account.  You have bitcoins on there.  You don't touch them for 5 years.  The government forces Coinbase to follow their existing escheatment laws and send them the money (assuming you are a resident of NY).  This already happens with your bank accounts.  I had one with a few bucks in it that I hadn't used for years.  They sent me a letter that said in 60 days they were sending it to the state.  I had to call and "reset the clock".

Obviously, nobody can seize bitcoins that you hold yourself.

Hmmm, I see! I think that's not bad! We should be using the blockchain instead of eg goxcoins, ious and whatnot!

How is that not bad?

[Raystonn]

Same regulations we've had forever for all financial institutions.  Abandoned accounts go to the State, where they can be reclaimed by the owner.  This only affects funds (Bitcoin included) kept in a financial institution, such as  an exchange or bank.

[tabnloz]

Having just read Erik Vorhees' article on BitLicences it seems like they are attempting to track users worldwide.

An ewallet provider will require photo ID, address etc worldwide, for example.

Doesn't seem feasible.

Hopefully industry leaders can change these features in the 45 day window.

http://moneyandstate.com/reflections-right-privacy-response-nydfs-bitcoin-proposal/

[minerpumpkin]

Regulation = Acceptance by the state. We need this in order for big investors/institutional money to really start flowing. Many just aren't willing to jump through all the hoops in order to buy BTC.

[GangkisKhan]

Regulation = Acceptance by the state. We need this in order for big investors/institutional money to really start flowing. Many just aren't willing to jump through all the hoops in order to buy BTC.

Small players will slowly be price out of the game.

[Bagatell]

Having just read Erik Vorhees' article on BitLicences it seems like they are attempting to track users worldwide.

An ewallet provider will require photo ID, address etc worldwide, for example.

Doesn't seem feasible.

Hopefully industry leaders can change these features in the 45 day window.

http://moneyandstate.com/reflections-right-privacy-response-nydfs-bitcoin-proposal/

Excellent piece. The best response I've seen.

[becoin]

Excellent piece. The best response I've seen.

yep, very good one.

The parody can be summed up in one sentence. The consumer is forced to accept government protection and pay the corresponding price even if he/she doesn't want to! Pay for my protection or you'll lose all you have and this is an offer you can't refuse.

Racket (crime)

A racket is a service that is fraudulently offered to solve a problem, such as for a problem that does not actually exist, will not be affected, or would not otherwise exist. Conducting a racket is racketeering.[1] Particularly, the potential problem may be caused by the same party that offers to solve it, although that fact may be concealed, with the specific intent to engender continual patronage for this party. A prototype is the protection racket, wherein a person or group indicates that they could protect a store from potential damage, damage that the same person or group would otherwise inflict, while the correlation of threat and protection may be more or less deniably veiled, distinguishing it from the more direct act of extortion.

[Ibian]

http://moneyandstate.com/reflections-right-privacy-response-nydfs-bitcoin-proposal/

Got around to reading this just now. Not super impressed. The reality is, first, that regulation was going to happen. No way around this and hopefully he is smart enough to know this, and if so, it amounts to little more than whining. Second, that those of us who want our coins to be anonymous have the ability to do so. And perhaps, third, that yes Satoshi would be locked up for life or simply killed by our great leaders if he stepped forward, unless he happens to be working for them.

[becoin]

The reality is, first, that regulation was going to happen.

The reality is, first, bitcoin can't be regulated. And, second, if it can then bitcoin price will drop to zero and another better crypto coin that can't be regulated will emerge from the dark unregulated Internet.

99% of the value of bitcoin comes from the fact it can't be regulated. So, if it gets regulated then bye bye bitcoin and hello darkcoin! Simple as that.

[Torque]

http://moneyandstate.com/reflections-right-privacy-response-nydfs-bitcoin-proposal/

Got around to reading this just now. Not super impressed. The reality is, first, that regulation was going to happen. No way around this and hopefully he is smart enough to know this, and if so, it amounts to little more than whining. Second, that those of us who want our coins to be anonymous have the ability to do so. And perhaps, third, that yes Satoshi would be locked up for life or simply killed by our great leaders if he stepped forward, unless he happens to be working for them.

People can whine all they want about the NY reg proposal.  But the only people whining are bitcoin users, not NY-based bitcoin companies:

http://internet.itbusinessnet.com/article/itBit-To-Comply-With-NY-DFS-BitLicense-Regulatory-Guidelines-3389846

[Raystonn]

I think of the regulations as a bait and switch.  Fiat needs a central authority.  Bitcoin does not.  So Bitcoin can survive without following regulations.  We will cooperate with the regulations to get global adoption.  Once that happens, the world will tell the U.S. to go to hell, and the U.S. will have no recourse.

[Ibian]

The reality is, first, that regulation was going to happen.

The reality is, first, bitcoin can't be regulated. And, second, if it can then bitcoin price will drop to zero and another better crypto coin that can't be regulated will emerge from the dark unregulated Internet.

99% of the value of bitcoin comes from the fact it can't be regulated. So, if it gets regulated then bye bye bitcoin and hello darkcoin! Simple as that.

Well, it's happening. Would you like to sell me all your bitcoins for the generous price of zero?

[T.Stuart]

sweet, time for my domains to go to the moon!!!!

NEWYORKBITCOINLICENSE.COM
NEWYORKBITLICENSE.COM
NEWYORKBITLICENSES.COM
NYBITCOINLICENSE.COM
NYBITLICENSE.COM
NYBITLICENSES.COM

... And you to get charged with cybersquatting by NYC! 

[becoin]

Well, it's happening.

What is happening?