Bitcoin Update

Hope you didn't put your money into Bitcoins! I didn't...

"Those who have the gold make the rules."

“I believe that banking institutions are more dangerous to our liberties than standing armies.” – Thomas Jefferson

History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance. -James Madison

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."

 http://www.forbes.com/sites/jonmatonis/2013/06/23/bitcoin-foundation-receives-cease-and-desist-order-from-california/

" I think that the foundation could send back a nicely worded letter to the effect that they write software/sponsor the writing of software (delete as applicable). They do not sell cars, sell drugs, or engage in money transfer. They should not be held any more responsible for the use their software is put to, than Microsoft is responsible for MS Word being used to write threatening letters to people."

 " ... what kind of geek fantasy world must one live in to think that bitcoin would actually become some legitimate alternate currency and then not end exactly the way it appears to be ending."

"Are XBox Live Points money?
Next up they'll send a Cease and Desist order.
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. "

"So, the purveyor of mathematical computations that can be traded and/or sold via a network of cryptography meets a foundation that sells the idea of value via paper receipts.
This could get rather interesting..."

"You might as well enjoin the wind from blowing because it transports things without a license.
The foundation does not handle or transfer funds any more than meteorologists control the winds."


" In a world where seismologists can be jailed for not predicting an earthquake [guardian.co.uk] anything is possible."

 "I wonder why California felt the Bitcoin Foundation was in violation of the law, which states that the following entities are exempt [ca.gov] from this licensing requirement:

An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons excluded by this section, in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearing house transfers, or similar funds transfers, to the extent of its operation as such a provider.

If they're going to claim that the Bitcoin Foundation is engaged in the business of money transmission, wouldn't it be because they consider them to be the "operator of a payment system" as described in the law [ca.gov]? Which would appear to exempt them from the licensing requirement."