How statists and regulators turned New York into a Bitcoin hell hole

posted by
November 1, 2016
by William Suberg  
Posted in Commentary

"New York regulators have issued just two BitLicense permits in the 18 months since the regulations became law, it has been revealed -- while rejecting four. A Reuters request also revealed the BitLicense program has an application backlog of 15, with a lack of qualified staff blamed for the snail's rate approval progress. ... New York has become something of a dinosaur even at consumer level, with popular cryptocurrency services such as ShapeShift and Poloniex blocked in the region. Users are currently forced to go to New Jersey instead. Meanwhile, support is again rallying against a proposed update to Bitlicense which would impose further requirements related to cybersecurity." (11/01/16)  

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  • dL

    “Coin Center executive director Jerry Brito told Reuters the economic status quo will ensure the jurisdiction still gets its fair share of innovation.”

    ah, Brito, the former George Mason professor innovating his way into the beltway crackpipe compliance swamps. What was that he said a few years ago, we must nail down a regulatory climate in bitcoin to ensure innovation…

    NOTE: even states that supposedly pass “bitcoin friendly regulation/licensing” will result in exchanges pulling out from serving anyone in that state. The absolute best thing is for states not to treat it as money. No regulation as money.

    • Well, regulation DOES ensure innovation, just not in the way Brito had in mind. Cryptocurrencies are in the process of making themselves less vulnerable to said regulation. That’s innovation.

      • dL

        “Cryptocurrencies are in the process of making themselves less vulnerable to said regulation.”

        The compliance/regulation is mostly FinCen at the exchange level(state regulations are another layer, and an increasingly bothersome one) . If you are xchanging dollars/govt currency for any cryptocurrency, you r going to encounter it. No one in the world is exempt from it. The only alt options are something like localbitcoins, which typically preserves ur “anonymity” at a big chunk of an opportunity cost. Last,last resort for me…

        Obviously, if you don’t need to xchange dollars to obtain cryptocurrency, then there aren’t any compliance regulations at play. And there isn’t any way to enforce anything like that unless mining becomes expropriated into a state regulated industry.

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