Skip to comments.New York Now Accepting Applications for Digital Currency Exchanges
Posted on 03/11/2014 8:14:28 PM PDT by Errant
New Yorks Superintendent of Financial Services, Benjamin M. Lawsky, has issued a public order that confirms the state is now accepting applications for digital currency exchanges.
Perhaps most notably, however, was that Lawsky indicated that these businesses will be regulated under new New York regulation, which he committed to having in place by the end of the second quarter of 2014.
In his remarks, Lawsky struck his usual balance of at once recognizing the promise of digital currencies and stressing that related business activities need to be conducted in a responsible and lawful manner.
(Excerpt) Read more at coindesk.com ...
I generally don’t think much of New York but this will add legitimacy to Bitcoin.
Land of the Free News: The government will do everything it can to destroy financial privacy.
And perhaps make it easier to get your fiat after selling. However, I’m looking forward to the day when you don’t have to exchange crypto for fiat in most instances. ;)
Indeed Buckwheat. We’re practically there now...
Part of my salary is actually paid in Amozon.com gift certificate. If I write a certain number of app reviews a month, I get a 50 euros certificate bonus.
The exponential growth of Bitcoin will not be stopped no matter what a state does or doesn’t do. We’ll see what happens, my guess is innovation will be leaving New York for greener pastures.
Everyone in the space knows about the security issues and the free market will present any remedies needed. These so called regulators didn’t have the brains or decency to even purchase or use Bitcoin before convening their investigative panel, very typical.
That is absolutely true and New York will be at the forefront. But what this really means is that people who don't want any financial privacy and some sort of transaction tax can open an account in NY state and trade in their bitcoins for USD. That would include businesses that are already highly regulated. It is a perfect solution for them.
The rest of us can transact through exchanges elsewhere or better yet, through no exchange at all. Remember that there is nothing that NY can do to regulate bitcoin itself, that is impossible. There is nothing NY state will learn from their regulated exchange that is not already public knowledge in the bitcoin chain.
An analysis of the bitcoin chain can be done with clustering and potentially there can be guilt-by-association by having transactions associated with someone NY state doesn't like (e.g. a tax "evader"). But there is nothing NY state can do to obtain identities behind public keys except those strictly associated with the exchange. And that means there's essentially no change in privacy for the rest of the bitcoin world.