Bitcoin's Regulatory Nightmare Is About to Get More Frightening

let's say you want to start a vid Quine company in the u.s. chances are you're gonna need a money transmitter license or rather 51 of them because 47 states three territories in the District of Columbia each have their own permitting process for any business that handles money on behalf of its customers here's Megan Byrne the CEO of the Bitcoin exchange firm coin X talking about what this process has been like for her company some applications have been in for over a year and we're unable to determine the path forward as it's not a clear process fred aresome co-founder of the bitcoin wallet firm coinbase says that so far becoming compliant in just half the states has taken his company two years and costs two million dollars but dealing with the states is just the beginning Bitcoin firms also have to abide by the rules of the federal Consumer Financial Protection Bureau and the US Treasurys Financial Crimes enforcement Network which just sent a chill through the industry by finding the cryptocurrency startup ripple labs $700,000 for allegedly violating its rules Jeri Britto is the executive director of coin Center in industry advocacy group it takes lawyers in each state it means criminal background checks in each state it means bonds for each site it's it's a huge barrier of entry instead of sorting out this regulatory amass government officials are piling on even more red tape Benjamin Loski New York state's top financial regulator has spent the last year hammering out the details of the so-called bit license which will apply to any company that serves customers in New York right now the regulation of virtual currency industry is still akin to a virtual Wild West loss key points to a slew of recent headlines about drug sales alleged money laundering and theft in the Bitcoin world but these activities are already illegal under existing laws and regulations and New York already requires that companies obtain a money transmitter license it's duplicative it doesn't achieve any new purpose to have to require two licenses when you do the background check for one license what's the point of doing a background check for another license while the final details won't be released until later this month the most recent draft of the bill since his provisions that specifically duplicate federal regulations that are already on the books it has an anti money laundering provision which is something that's unprecedented anti money laundering is something that the federal government handles it's handled by FinCEN Financial Crimes enforcement network at the Treasury Department so now if you are a business not only do you have to file suspicious activity reports and to know your customer for the federal government now for the first time you have to do it for a state as well bruce fenton is the executive director of the Bitcoin foundation we already have existing laws against fraud against hacking so really what we are left with is something very onerous and burdensome for not just American companies but companies all over the world instead of stating you can't do business until you meet every requirement that has yet to be defined give us a probationary licence so that we can get that process moving forward ideally a small startup to go to one place whatever that is and have clear and simple rules that they could follow to get that license we don't know when the next Facebook is gonna come along started by a guy in his dorm what if he would have had to spend four million dollars to start that we would have never seen it we may not even know what kind of innovations are around the corner if we stifle that innovation before it even has a chance to start

23 thoughts on “Bitcoin's Regulatory Nightmare Is About to Get More Frightening”

  1. Government is NEVER the solution! Government is ALWAYS the problem! Those in power want to stay in power and they use regulation to stop YOU from EVER starting a business that employs people! The unemployment rate will rise and they will tell more lies! Everything government says, IS A LIE! THEY deal in drugs and the CIA is the world kingpin! THEY treat you as if YOU are the drug dealer. THEY launder money through HSBC and have been caught twice, but NOBODY went to jail! NOBODY was even fired. NOBODY was spoken to harshly, but many got bonuses, promotions and raises for doing such a splendid job, laundering money for the CIA drug dealers! FEW talk about it, because those in control have so much POWER and they can cause your life to be miserable! We need to dismantle the current system. All the representatives are corrupt! They are blocking creative people from advancing our culture, they are blocking us from creating jobs and our representatives don't represent us! They don't vote the way we would and so they are USELESS! The capitol is no longer a 3 day ride by horseback. We can represent ourselves today with the internet and the blockchain. When will change come? NEVER! Those in power will remain in power FOREVER!

  2. Controlled opposition at its finest. No matter who wins, The Federal Reserve Bankers never lose; you know, the ones that created the dollar and bitcoin. My bad: we know who created the dollar but were suppose to act like we don't know who created bitcoin. What was that guys name? lmao

  3. Remember the ONLY ones that hate BITCOIN are the ones that don't OWN ANY , FACT . The naysayers ….. I say GO….. BITCOIN ….GO .

  4. Guess what. All this "the government is coming" junk is all just scare tactics. Better to just trade in bitcoin or just cash out underground…

  5. Rockefeller said "Competition is a sin." – that's why collectivism is so damaging. Giving few people great power makes them huge targets for corruption, and as "they" say "Anything that is corruptible, eventually becomes corrupt". That's what's going on in most countries around the world.
    STOP voting unless you find someone who actually represents you. Send a signal to politicians outside the established system, that maybe they represent you, and will get your vote. When politicians says it's you duty to vote, it's to keep competition away.

  6. Do i sense a decentralized solution coming? Person to person exchanges will explode in 2018. Do you really need coinbase? Why be limited to one centralized company anyway? Will crypto owners break their chains?

  7. Another words, it's them against your freedom. The battle just came home to you, whether you like it or not.

  8. As bad as it is, this only shows a tiny sliver of how messed up and corrupt our central bankster fiat "money" system is. The main reason behind most of these requirements is to ensure the banksters and government know and control everything you do. Reprehensible. Bitcoin is the key to liberating all mankind from the chains of central bankster debt slavery.

  9. They also controls congress because they can afforded a lot of lobbyists. They got us by the balls. They have enough money to put a lobbyists in front of congress every day all day for the next fifty years. Think about that 🤔

  10. Today's FCC ruling will destroy bitcoin in America any way. The internet providers now control the speed of trad. I think you know what that means.

  11. Propaganda. Have just a smidge of vision, it is so obvious to anyone who can think outside their box. Thanks to cryptography the nation state is toast. Government blowhards will dry up and blow away.

  12. We the American people bailed out the big banks in 2008. If the government places regulations to protect banks from BTC and other cryptocurrencies we must face the fact that we live in a Kingdom or a constitutional monarchy.

  13. Bitcoin knows no borders, just use it, create companies in country's where it is attractive!

    Maybe i am flagged as Bitcoin-terrorist now 😀

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