Tuesday, June 25, 2013

California Orders Bitcoin To Stop

Posted by Milton Recht:

From arstechnica, "California sends a cease and desist order to the Bitcoin Foundation: Licensing is required for money transmissions in-state; Bitcoin denies such activity." by Nathan Mattise:
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. (The license information is available on CA.gov and Forbes placed the cease and desist letter on Scribd.)

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.

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