California Looking To Make All Bitcoin Businesses Illegal

An anonymous reader writes A new law has been proposed in California that would effectively outlaw all Bitcoin-related businesses that don't first get "permission." The details are vague within the bill itself, which is part of what makes it dangerous. If you're doing anything with virtual currency, you may have to go line up in Sacramento to get permission first.

Comments

yeah, California is falling apart

[NostalgiaForInfinity]

If you look at the state, it's deeply in debt and politically utterly dysfunctional. Educational performance has fallen to nearly the bottom of the nation. The infrastructure is falling apart. Taxes are sky-high. The prisons are overcrowded and an embarrassment to the nation. Everything is regulated, from putting a shed in your backyard to how the hens are kept that produce your eggs. People and businesses are moving out of the state if they can.

California weather and scenery will mean that it will always remain a playground for retirees and the wealthy. And its widespread crony capitalism will keep some corporations around. But anybody with half a brain, and anybody who actually wants to innovate and accomplish something will move elsewhere.

Re:yeah, California is falling apart

[NostalgiaForInfinity]

http://taxfoundation.org/blog/...

California ranks #4 in terms of overall tax burden, just behind NY, NJ, and CT.

California also has the top marginal income tax rate in the country; even worse if you life in SF.

Facts, you should try getting them sometimes.

Oh, and if you make less than $150k/year, you are barely middle class in the Bay Area.

But you're right: economically, Alabama is pretty lousy too. The fact that California sucks doesn't mean that some other states suck as well.

WARNING:

[Irate Engineer]

Bitcoin contains features known to the State of California to cause untraceable transactions, speculation, and other financial harm.

FALSE HEADLINE

[Anonymous Coward]

From the text of the bill:

26004. The following are exempt from the licensing requirement described in Section 26002:
(6) A merchant or consumer that utilizes virtual currency solely for the purchase or sale of goods or services.

This bill has nothing to do with people who wish to buy or sell goods or services in bitcoins. It is intended to regulate bitcoin exchanges, presumably to avoid another Mt Gox scenario. The bill is still in its very, very early stages, and so I'm sure there are problems with the verbiage. But the headline and summary are absolute bullshit, intended to drive readers into an anti-government rage, and thus generate clicks.

Re:"line up in sacramento first"

[ShanghaiBill]

People keep saying that. California is doing fine. And will continue to do so in the future. If you lived there, you would understand.

I live in California, and I certainly don't understand. Every year, California becomes more and more anti-business. Companies are leaving the state. We have one of the highest unemployment rates in America. There are still many business here, including many "hubs" for tech, entertainment, aerospace, etc. But we are slowly choking the goose that lays the golden eggs.

Re:"line up in sacramento first"

[roc97007]

I used to. I was born there. Moved out awhile back when it became apparent I'd never be able to own a house that wasn't less than a 2 hour drive from work. I did live there, and I did not understand.

Perhaps if you lived somewhere else *you'd* understand.