Vote: Fix the BitLicense

[tspacepilot]

Can anyone summarize what's going on with this bitlicense.  I see references to coinbase (a california company) and some kind of state or local laws, also something about personal information.  Is this having to do with a software license?

[nutildah]

Can anyone summarize what's going on with this bitlicense.  I see references to coinbase (a california company) and some kind of state or local laws, also something about personal information.  Is this having to do with a software license?

Coinbase is pretending the bitlicense regulation has passed already and is voluntarily collecting all of their buyers' information (which is why I stopped buying bitcoin from them).

Put simply, BitLicense would make anybody who deals with bitcoin anywhere in the world have to register their personal information with the state of New York. Bitcoin merchants would have to pay a fee and apply for a license to exchange bitcoin, unless you're a giant megabank already, in which case you are exempt from having to pay the licensing fee.

[tspacepilot]

Can anyone summarize what's going on with this bitlicense.  I see references to coinbase (a california company) and some kind of state or local laws, also something about personal information.  Is this having to do with a software license?

Coinbase is pretending the bitlicense regulation has passed already and is voluntarily collecting all of their buyers' information (which is why I stopped buying bitcoin from them).

Put simply, BitLicense would make anybody who deals with bitcoin anywhere in the world have to register their personal information with the state of New York. Bitcoin merchants would have to pay a fee and apply for a license to exchange bitcoin, unless you're a giant megabank already, in which case you are exempt from having to pay the licensing fee.

Interesting.  However, the fact that apparantly it's a New York State law means that it would realy only be enforcable upon businesses located or headquartered in NY.  Right?

[nutildah]

Can anyone summarize what's going on with this bitlicense.  I see references to coinbase (a california company) and some kind of state or local laws, also something about personal information.  Is this having to do with a software license?

Coinbase is pretending the bitlicense regulation has passed already and is voluntarily collecting all of their buyers' information (which is why I stopped buying bitcoin from them).

Put simply, BitLicense would make anybody who deals with bitcoin anywhere in the world have to register their personal information with the state of New York. Bitcoin merchants would have to pay a fee and apply for a license to exchange bitcoin, unless you're a giant megabank already, in which case you are exempt from having to pay the licensing fee.

Interesting.  However, the fact that apparantly it's a New York State law means that it would realy only be enforcable upon businesses located or headquartered in NY.  Right?

You would think so, but the way the legislation is currently written they are trying to extend their reach of authority to the entire world, hoping every single bitcoin user across the planet will just willingly go along with it. Even though there exists no legal precedent to do so.

[OleOle]

The regulators will win, they will make money off bitcoin regulation, and the utility of bitcoin will be destroyed.

This is why the price continues to drop despite the millions of dollars of fiat being poured into bitcoin startup ventures.

Please God or somebody else prove me wrong.

The destruction of bitcoin value will be incredible to watch.

*pulls up chair, grins*

 

[tspacepilot]

The regulators will win, they will make money off bitcoin regulation, and the utility of bitcoin will be destroyed.

This is why the price continues to drop despite the millions of dollars of fiat being poured into bitcoin startup ventures.

Please God or somebody else prove me wrong.

The destruction of bitcoin value will be incredible to watch.

*pulls up chair, grins*

 

OleOle, I love the omg guys!

Nultidah, well NY can say "anyone in the world has to X" but obviously that's only enforcable on people reachable by the authorities of NY.  If for some reason coinbase or companies in California decide to go along, that's their decision.  I'm not too worried about NY taking over bitcoins, but then again I don't use coinbase anyway.  I can see why it's worth it to leave them because of this decision.

[NewLiberty]

Can anyone summarize what's going on with this bitlicense.  I see references to coinbase (a california company) and some kind of state or local laws, also something about personal information.  Is this having to do with a software license?

Coinbase is pretending the bitlicense regulation has passed already and is voluntarily collecting all of their buyers' information (which is why I stopped buying bitcoin from them).

Put simply, BitLicense would make anybody who deals with bitcoin anywhere in the world have to register their personal information with the state of New York. Bitcoin merchants would have to pay a fee and apply for a license to exchange bitcoin, unless you're a giant megabank already, in which case you are exempt from having to pay the licensing fee.

Interesting.  However, the fact that apparantly it's a New York State law means that it would realy only be enforcable upon businesses located or headquartered in NY.  Right?

Its a proposal not a law, made by an unelected noob politico on the take from lobbyists.
The lobbyist writes the proposal, hands it to the noob politico over lobster on their yacht, and laskys job is to try to make it stick.
He gets out of doing any real thought on the matter, gets the press all riled up and makes a name for himself as the protector of TPTB.

[zedicus]

there will be more of this kind of 'regulation' coming .. which is a thinly-veiled attempt to allow coinbase and circle to create a monopoly. Only the big companies can afford to 'play by the rules'

Can you elaborate as to which rules would be costly to abide by?

What the NY regulations say in a nutshell is that companies that exchange BTC to and from fiat must identify people who they trade with (this should already be done due to AML rules), and that exchanges must have enough BTC in their possession to cover all of their customers BTC deposits (in other words they cannot operate on a fractional reserve system).