New York’s New Bitcoin Rules Are Going to Kill Its Startups

[cryptocurrencylive]

New York’s New Bitcoin Rules Are Going to Kill Its Startups

http://www.wired.com/2014/07/ny_bitcoin/

[titulng]

Indeed exciting!

[DeathAndTaxes]

I don't believe there are any Bitcoin startups in NY and that likely isn't a coincidence.   The bad news is for NY residents.  Unless scaled way back many startups will simply not be able to comply.  That will leave residents of NY with less choices, more risk (unlawful entities), and higher costs.

[jubalix]

NYC loss....when they see how much money they are loosening at 10~100~1000x today, they will likely change their tune.

also I note

"Bitcoin businesses must also file frequent reports to Lawsky’s organization"

typical bureaucracy trying to give itself more power and importance at the expense and cost of the taxpayer.

One thing the US does have going for it is the competing corporations laws inter state, which may allow much larger competition in seeking income.

Much like Delaware has quite good company laws and a purportedly excellent bench, so many companies like to incorporate their.

Further politicians are more than happy it seems to accept BTC funding. This may cause and advantage to BTC accepting politicians and thus force more to accept. They will find away from self interest to make it possible for them to get money/BTC.

Finally is it about time that some BTC candidates run from the community. I have found in elections that if even appear to take any sort vote, all of a sudden the front runner will contact you and they will cut a deal.

[tmbp]

As tyrannical governments get more desperate we will see more desperate measures such as confiscating funds from banks that operate in countries deemed to be too weak on Bitcoin.

American exceptionalism knows no bounds.

[URSAY]

Finally is it about time that some BTC candidates run from (for?) the community.

I'd love to hear more about this process and what you think needs to happen. 

[commandrix]

I have a feeling that the Bitcoin version of Silicon Valley and Wall Street won't be in New York, then. The way things are going, our hotbed of innovation is probably going to be on a seastead somewhere. Or maybe out in space where there isn't much in the way of government.

[bridgesro]

One hopeful (though overly optimistic, perhaps) thing to keep in mind is that this is a draft at the moment. With good fortune, maybe it won't come to fruition.

New York hasn't been a good State for any kind of business for a long time now. I think they're lucky to have Wall Street there, because they continue to drive business and innovation away from their State. It's only going to hurt them in the long run. Whichever State is first to publicly announce a Bitcoin friendly environment stands to benefit quite a bit, I believe. It's an industry in its adolescence looking to grow more and more; why not capitalize on that early in the game?

[slaveforanunnak1]

New York’s New Bitcoin Rules Are Going to Kill Its Startups

http://www.wired.com/2014/07/ny_bitcoin/

Good! i dont' want NY to be the center of bitcoin inovation anyway! last thing we need is bunch of wallstreet cunts running over to BTC land and loopholing the shit out of it.
go fuck yourself NY.

[galbros]

Totally agree.  By engaging in regulatory overreach all NY has done is make sure it is a laggard again in innovation and economic development.

[jubalix]

Finally is it about time that some BTC candidates run from (for?) the community.

I'd love to hear more about this process and what you think needs to happen.  

Essentially we need a candidate(s) and political party to run for a legislature , either lower or upper house. Register party. Select candidate.

The party needs to have its policy set out which is kinda pre written in this forum.

Run in a  high profile jurisdiction like NYC state level or if you want federal.

Whatever legislature this regulation NYC guy's works for would be good.

At that point your independent can be BTC funded.

deals can then be brokered and BTC is the boss of regulation.

given the right platform...there is enough BTC out there to really fund our political party.

if successful BTC wins....rinse repeat in other jurisdictions.

[tooil]

Not just the startup company. It will kill its value also.

[waldox]

newyork is the hotbed of bankers (wall street)
this was expected to happen
lets hope silicon valley wisens up and dont follow their lead

[tins]

New York’s New Bitcoin Rules Are Going to Kill Its Startups

http://www.wired.com/2014/07/ny_bitcoin/

So, if a company is headquartered out of another state, do they not need to follow these proposed regulations?
Or, is it any company operating a business that does bitcoin transactions (sends their products, sells their app, etc) in New York, regardless of where they are headquartered, required to follow these regulations?

[serje]

. Bitcoin, after all, came of age as a lubricant for illegal activity on the Silk Road.

WTF? Is the guy who wrote that article a complete dumb-ass ?

what he should write in my opinion is this

Bitcoin, after all, came of age as a way to avoid the immoral actions of central bankers

but then again maybe he is controlled by the immoral bankers ...

[serje]

New York’s New Bitcoin Rules Are Going to Kill Its Startups

http://www.wired.com/2014/07/ny_bitcoin/

So, if a company is headquartered out of another state, do they not need to follow these proposed regulations?
Or, is it any company operating a business that does bitcoin transactions (sends their products, sells their app, etc) in New York, regardless of where they are headquartered, required to follow these regulations?

Normal logic says only those who resides in NY .... but who know how the hell they will change the rules ....

[Ron~Popeil]

New York’s New Bitcoin Rules Are Going to Kill Its Startups

http://www.wired.com/2014/07/ny_bitcoin/

So, if a company is headquartered out of another state, do they not need to follow these proposed regulations?
Or, is it any company operating a business that does bitcoin transactions (sends their products, sells their app, etc) in New York, regardless of where they are headquartered, required to follow these regulations?

Normal logic says only those who resides in NY .... but who know how the hell they will change the rules ....

There is also a danger that other states follow the NY model. It won't affect regular users much but it raises serious entry barriers for exchanges to do business with NY residents.

[serje]

New York’s New Bitcoin Rules Are Going to Kill Its Startups

http://www.wired.com/2014/07/ny_bitcoin/

So, if a company is headquartered out of another state, do they not need to follow these proposed regulations?
Or, is it any company operating a business that does bitcoin transactions (sends their products, sells their app, etc) in New York, regardless of where they are headquartered, required to follow these regulations?

Normal logic says only those who resides in NY .... but who know how the hell they will change the rules ....

There is also a danger that other states follow the NY model. It won't affect regular users much but it raises serious entry barriers for exchanges to do business with NY residents.

well west was always different than east .... just go to cali and there you can live only with BTC

[haploid23]

Hmm ironic how two ends of the US have opposite view on btc. California just legalized btc with none of these strict regulations, while New York wants heavy regulation. We're in the age of rapid development for crypto, so I wonder what the other state's stance will be.

[DeathAndTaxes]

Hmm ironic how two ends of the US have opposite view on btc. California just legalized btc with none of these strict regulations, while New York wants heavy regulation. We're in the age of rapid development for crypto, so I wonder what the other state's stance will be.

CA is looking to create a "bitlicense" NY just beat them to the punch.  Also CA only "legalized" Bitcoin because they previously passed a law which made issuing and circulating virtual currencies illegal.  It would be like if CA accidentally passed a law which made hamburgers illegal and then corrected it by repealing that statute.  I doubt you would consider CA to be  pro hamburger.

If you want to look at how punitive the various states will be just look at their existing MSB licenses are and when they passed them.  NY and CA were both first movers in setting up licensing and they both top the list with massive regulatory overhead.  CA maximum bond requirement for "traditional" money transmitters is $7 million.