You are currently viewing California Serves Bitcoin Foundation With Cease And Desist Order

California Serves Bitcoin Foundation With Cease And Desist Order

Bitcoin is still a concept that is gaining traction and it may take a while before government functionaries are able to understand exactly how it works. California’s Department of Financial Institutions has now the Bitcoin Foundation with a cease and desist order over fairly ridiculous reasons.


Bitcoin

Bitcoin Foundation is a non-profit organization which does not directly engage in any actual money-making or money-transferring procedures. Rather, the foundation aims to empower Bitcoin users by creating standards and protocols that can be universally observed.

However, the Department of Financial Institutions in California has somehow gotten this into its head that the organization is directly in the business of money transmission and since it doesn’t have a proper license for that, it needs to be slammed with exorbitant fines.

Bitcoin Foundation lawyers are naturally responding with the argument that the organization is a non-profit and does not stand to such scrutiny. If the state of California continues the unfair assault against the organization, it can result in fines up to $2500 per violation per day. Not only that, conviction under a federal statute can lead to five years in prison.

Let’s hope that the issue is resolved before it gets to that. If it isn’t, this would be a huge setback for the Bitcoin community which is still recovering from a number of recent hacking episodes.

Courtesy: Forbes

[ttjad keyword=”htc-phones”]

Salman

Salman Latif is a software engineer with a specific interest in social media, big data and real-world solutions using the two.Other than that, he is a bit of a gypsy. He also writes in his own blog. You can find him on Google+ and Twitter .

This Post Has 2 Comments

  1. Tsais

    No surprise there… The crooks that own the FED won’t allow alternatives to their fraudulent currency, the petro dollar.
    When Gaddafi tried to implement a gold-backed, pan arabian currency, cause the arabs got sick of taking worthless green paper for their oil, they went in, destabilized his country with a fake, CIA sponsored revolt and then quickly killed Gaddafi to make sure he couldn’t talk in any international court.

    These crooks were only letting Bitcoin go on to learn whatever useful might be to learn from its methods, so they can integrate it into their own purely electronic currency they are planning. Because in an economy with no cash money you can stuff into a bag somewhere, they would gain complete control. Anyone they don’t like, they just block their electronic account and remotely use the kill switch (that’s supposedly being made mandatory against theft) to disable their phone.

    Blam, you’re out of business in an instant, if you stick up in any way.

  2. alexreid

    You can buy coins of all manner of description in coin shops. You can also lawfully trade them with your friends online. Make Bitcoin a redeemable solid coin and it might overcome some of the hacking problems.

Leave a Reply