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Bitcoin Token Maker Suspends Operation After Hearing From Federal Gov't

Posted by timothy on from the if-the-artifact-is-a-crime-why-not-the-system? dept.

First time accepted submitter Austrian Anarchy writes with this story via Reason (and based on a report at Wired) about a maker of physical Bitcoin tokens. Quoting from Reason's take: "Mike Caldwell ran a business called Casascius that printed physical tokens with a bitcoin digital key on it, key hidden behind a tamper proof strip. He'd charge $50 worth of bitcoin to print a bitcoin key you sent him via computer on this token. Cool stuff--a good friend of mine found one sitting unnoticed in her tip jar from an event at which she sold her artisan lamps from 2011 and was naturally delighted given the nearly 1000x increase in value of a bitcoin since then. So, you're making something fun, useful, interesting, harmless--naturally the federal government is very concerned and wants to hobble you. 'Just before Thanksgiving, [Caldwell] received a letter from the Financial Crimes Enforcement Network, or FINCEN, the arm of the Treasury Department that dictates how the nation’s anti-money-laundering and financial crime regulations are interpreted. According to FINCEN, Caldwell needs to rethink his business. "They considered my activity to be money transmitting," Caldwell says. And if you want to transmit money, you must first jump through a lot of state and federal regulatory hoops Caldwell hasn't jumped through.'"

2 of 258 comments (clear)

  1. Re:Absolute Defense by blue+trane · · Score: 1, Flamebait

    Money is speech in the same way that the Supreme Court ruled that education should be separate but equal, or that Dred Scott was property.

  2. Another random federal agency by Okian+Warrior · · Score: 0, Flamebait

    Another random federal agency has decided that they are the law-making body with authority over some aspect of our lives. Discretionary enforcement(*) allows them to pick-and-choose whoever they want.

    The DHS regulates model rocketry, the DEA regulates chemistry sets, the ATF manages the second amendment, and so on and so on and so on.

    Weren't we supposed to elect the lawmakers? I seem to recall a forum or meeting place of some sort where we could send people to make laws on our behalf.

    Is this "regulation without representation"?

    (*) This same federal agency doesn't suppress Starbucks cards, online gaming gold, or frequent flyer miles, all of which are just as much a currency.