cease and desist

2013-07-01 Crypto-Timeline

Here is a log with relevant legal, regulatory, law enforcement and business risk milestones in the crypto-currency race to maturity with links to trusted sources.

The Key June 2013 Crypto-Events were:

• 6/10/2013 – LibertyBit temporarily suspends operations due to RBC closing their bank account
• 6/19/2013 – Bitspend suspends operations due to Chase closing their bank account
• 6/20/2013 – Mt Gox temporarily suspends U.S. Dollar withdrawals
• 6/23/2013 – Bitcoin Foundation receives Cease and Desist Order from California
• 6/24/2013 – DEA Bitcoin seizure is first ever in US history

Please point me to any events that you consider important and would like to see on the log. Continue reading →

“Bitcoiners Must Understand that Compliance is Just the Beginning”

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Interview with David Landsman, Executive Director of the National Money Transmitters Association (NMTA) – PART TWO

Longer post than usual, I’m aware, but well worth it –the closing of bank accounts, the Bitcoin Foundation Cease & Desist Order from California…  David comments on it all and gives links to valuable resources!

In PART ONE, David talked about the image problems that all money transmitters have in the United States, the fragmented regulatory regime and the likelihood of a federal license, now that the Bitcoin community has joined the fray.

Read on for David’s strong viewpoint on US banks –very timely, given the increasing closing of Bitcoin operator accounts in the US–, and the reasons why many legal and PR efforts in fighting the closing of accounts have so far been fruitless.

PART TWO Continue reading →

The Criminal Precedent that Could Curb Bitcoin’s Enthusiasm

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In July of 2008, after months of wrangling with the Department of Justice (DOJ), E-Gold, Ltd.’s senior management and directors pleaded guilty to the following charges:

• Conspiracy to Launder Monetary Instruments (federal)
• Conspiracy to Commit an Offense Against the United States (federal)
• Operating of Unlicensed Money Transmitting Business (federal)
• Transmitting Money Without a License (District of Columbia)

What does E-Gold have to do with Bitcoin?

Well, as soon as I describe what E-Gold was and did, you’ll see that the parallels with Bitcoin and its crypto-brethren are remarkably similar.  I will be quoting from the indictment itself, underlining Bitcoin-relevant language, and adding comments in brackets:

1. E-Gold was an issuer of “digital currency,” defined as a medium of exchange offered over the Internet Continue reading →

Is US Regulation the Single Biggest Threat to Bitcoin?

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On March 4, 2013 I gave a talk titled just like this post at the New York City Bitcoin Meetup.  The talk blurb read:

If you are a Bitcoin ecosystem participant (user, entrepreneur), you may be aware that there is a myriad of rules and regulations, at the federal, state and even international level, that may apply to you.  Why?  Because Bitcoin is technically a “value transfer” system, and such systems are heavily regulated to protect consumer rights and deter financial crime, including the financing of terrorism.  Join us for a lively discussion of potential obstacles to the growth of the Bitcoin ecosystem.

The rather hyperbolic title attracted a few dozen very smart (and gracious) entrepreneurs and geeks, most of whom, unsurprisingly, were not aware that the United States has a very convoluted and onerous regulatory regime that can potentially stifle innovation or, at a minimum, slow down the spread of virtual peer-to-peer value transfer systems like Bitcoin. Continue reading →