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Chinese Bitcoin exchanges warn NY over regulation

In response to the NY Department of Financial Services' proposed "BitLicense", three of the biggest Bitcoin (COIN, OTCQB:BTCS) exchanges in China (BTCChina, Huobi and OKCoin) have released a joint letter addressed to NY regulators which warns of far-reaching consequences due to their pending legislation.

On July 17, the Department of Financial Services proposed issuing a BitLicense which would protect consumers, prevent money laundering and enforce cyber security, but the exchanges see too many restrictions in the proposed license.

At issue are enhanced customer checks and that restrictions in NY could lead to limitations in other jurisdictions.

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Comments (4)
  • kmi
    , contributor
    Comments (4528) | Send Message
    I've said before, BTC will become relevant only when it becomes regulated, and when it becomes regulated it will have to compete with incumbent int'l payment systems that already have business models and compliance in place, at which point BTC will lose most of its interest and/or relevance.
    21 Aug 2014, 08:20 AM Reply Like
  • jurkojc
    , contributor
    Comments (196) | Send Message
    kmi. Whom would you propose regulate this? I.e, what would you trust? The FED? SEC? ABA? Wall St? I do not believe another (US led?) SRO or Government agency has any Intl financial traction left. Blame, FATCA, NSA, the lack trust in those agencies, the lack of trust of internet security or the safekeeping of any financial or other data base of any global/domestic corporation, is where the problem lies.
    Besides the more obvious debasement of currencies ALL govt's practice. BTW, I am not a precious metals fan, but am looking for alternatives (aggressively) to Fiat currencies. If you have an insight, please share. Thanks.
    21 Aug 2014, 09:35 AM Reply Like
  • Elix
    , contributor
    Comments (17) | Send Message
    Bitcoin can never be regulated. Only businesses using bitcoin can - such as the exchanges and wallet providers. This is what we are seeing with the bitlicense.
    21 Aug 2014, 09:49 AM Reply Like
  • kmi
    , contributor
    Comments (4528) | Send Message
    jurkojc, Perhaps you misunderstood the news here. The NY Dept of Financial Services is proposing precisely that it regulate BTC transactions/dealers.


    The point about 'regulation' is that end users are intended to be protected in particular from fraud akin to the MtGox situation among others, on the one hand, and that illegal activity is not perpetrated via these mechanisms (money laundering and other criminal activities recently conducted by int'l banks like HSBC) on the other.


    If you think governments worldwide will allow a 'tax and penalty free' int'l currency to circulate freely and to allow int'l criminal trade to be conducted with impunity, you are in for a surprise.


    Your 'alternative' to fiat currencies and/or precious metals, is the classic mechanism by which the world's wealthy have always operated: asset and income diversification, on a global scale. So that a failure of one 'fiat' does not irreparably harm you.
    21 Aug 2014, 12:29 PM Reply Like
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