Francis Pouliot, CEO Bitcoin Foundation Canada
July 18th 2014
source:
http://ca.bitcoinfoundation.org/proposed-bitlicense-regulations-will-isolate-new-york/The NYDFS is targeting individuals and corporations that gravitate around a computer protocol in a way that seems discriminatory and unjustified. As described by Bitcoin Foundation Regulation Affairs Committee Marco Santorini, the proposals target all members of the Bitcoin community:
“Who Requires a License: Surprise! Everyone does. Direct purchasers and sellers, multi-sig wallet providers, merchant payment processors, custodial exchanges, hell, even local wallet software providers probably need one […] Anyone who receives or transmits crypto as a business needs one”
Such technology-specific legislations are misguided, unnecessary and unreasonable. It is a much more rational approach to start understanding how the current laws already apply. Bitcoin does not exist in a legal vacuum. The sole fact that Bitcoin is used as an alternative to fiat money in a given context does not make it exempt to the laws in place and in most cases only a clarification of existing rules so that they apply to Bitcoin is necessary.
Enforcement of the Lawsky regulations, however, will prove to be an issue. The nature of Bitcoin is that the network is not, and cannot be, subjected to the control of any government, financial institution or any group whatsoever. Both the community and the technology are decentralized and will react organically to any external disruption, precisely because the network provides freedom of transaction.
As stated by Eric Vorhees: “a technology like Bitcoin will lead humanity in its own direction, despite the most eloquent proclamations from kings of any country”
Because of the extent of the burden created by this proposal, the incentive not to conduct business or to transact with individuals and corporations in the State of New York will become far greater. Financial and technological innovation will simply happen elsewhere. Bitcoin businesses have proven to be very mobile and sensitive to their regulatory environment.
However, Canadian authorities have proven to be cooperative and no such drastic proposals are being considered here. I am confident that they will approach Bitcoin in a rational and pragmatic manner that will truly foster innovation. Canada could very well prove to be a haven for the Bitcoin industry, much to its benefit.
