California Sends a Cease and Desist Order To the Bitcoin Foundation

An anonymous reader writes in with bad news for the Bitcoin Foundation. "California's Department of Financial Institutions has issued a cease and desist letter to the Bitcoin Foundation for "allegedly engaging in the business of money transmission without a license or proper authorization," according to Forbes. The news comes after Bitcoin held its "Future of Payments" conference in San Jose last month. If found in violation, penalties range from $1,000 to $2,500 per violation per day plus criminal prosecution (which could lead to more fines and possibly imprisonment). Under federal law, it's also a felony "to engage in the business of money transmission without the appropriate state license or failure to register with the US Treasury Department," according to Forbes. Penalties under that law could be up to five years in prison and a $250,000 fine."

Comments

Uh

[Anonymous Coward]

When did the foundation become a money transmitter? Oh yeah, it didn't.

Re:Uh

[sFurbo]

Don't think they thought it through? The foundation is theoretically unable to comply, so they have no way to avoid being closed and the executives put in jail. What part of that seems not thought through?

Re:Uh

[Osgeld]

"Hemp is of first necessity to the wealth & protection of the country." – Thomas Jefferson

"What prudent merchant will hazard his fortunes in any new branch of commerce when he knows not that his plans may be rendered unlawful before they can be executed?" -James Madison

dont fucking pick and choose, it makes you look like a nut

Re:Uh

[Kell Bengal]

Actually, I'd argue both Jefferson and Madison are talking sense here. Jefferson points out that a valuable commercial product should be exploited. Madison says that risk amelioration is important to encouraging business innovation.

How does failing to mention them (valid statements, if unrelated to the GPs point) constitute picking and choosing?

Re:Uh

[Anonymous Coward]

It's Slashdot, the truth tends to piss people off around here.

Re:Uh

[Kell Bengal]

And if the Bitcoin Foundation actually transmitted monetary value you might actually have a point.

Future regulation

[cold fjord]

As Bitcoin grows more successful, there will be increasing interest in subjecting it to regulation, just like any other financial instrument.

XBox Live Points

[Anonymous Coward]

Next up they'll send a Cease and Desist order to the makers of the Bittorrent protocol. That will stop piracy dead in its tracks!

Are XBox Live Points money?

http://www.xbox.com/en-US/Live/MicrosoftPoints
"Microsoft Points are the coin of the Xbox LIVE Marketplace realm. Microsoft Points is a universal system that works across international borders, and is even available if you don't have a credit card. "

Context is everything

[Camael]

"Hemp is of first necessity to the wealth & protection of the country." – Thomas Jefferson

Jefferson was right, and that statement far from painting him as a cokehead actually shows that he was a shrewd businessman.

These are the facts :-

1) Botanically, marijuana equals hemp. These are basically two names for the same plant.

2) Hemp was historically useful for rope, paper, and clothing, and was long promoted in Virginia as an alternative cash crop.

3) Jefferson farmed grew hemp on his Virginia farm commercially.

4) No great social stigma was attached to smoking pot in the late 1700s and early 1800s — pot use wasn't considered a problem until the early 1900s.

So, what was the problem with Jefferson's comment again?

Re:Context is everything

[Archangel Michael]

"newly created "Federal Bureau of Narcotics" (precursor to the DEA) which had been created partially to fight illegal alcohol, had precious little left to do"

And people expect the IRS to disappear if/when we get rid of Income taxes. Once created, no government entity willingly disappears. Which is why we should be VERY careful about assigning new powers to a government agency. That beast will never cease to eat.