Quite a few Bitcoin enthusiasts are closely eyeing the regulatory proceedings in the United States. Multiple states are looking at ways to give Bitcoin a legislative and regulatory framework, affecting both individual users and companies in the area. After the disaster of BitLicense, California was the next state on the list to propose a framework draft. That Bitcoin bill was shut down quickly though, as it failed to pass in Legislature a few days ago.
Bitcoin and other virtual currencies offer tremendous potential in terms of creating additional jobs, wealth and economic stability all over the world; it should come as no surprise then to find out these are three of the key reasons why government officials are not too keen on Bitcoin becoming a part of their economy. After all, if wealth would be distributed on an even playing field and decentralization is the new way of life, what do we need governments for?
The Reserve Bank of India has once again indicated its desire to regulate all activities related to Bitcoin and other virtual currencies in the country. Given the decentralized nature of these currencies, with no “backing” in place, the Reserve Bank of India fears virtual currencies will put the country’s financial ecosystem on its head. While this may be what Bitcoin was set out to do, strong opposition from government officials could present quite the roadblock.
One of the most worrying aspects of the BitLicense regulatory framework is the exodus of Bitcoin companies in the New York State area. Over the past few weeks, it has become quite clear that companies deciding to be compliant with BitLicense might face some serious backlash from its users. For those of you who are wondering which companies are actively pursuing a BitLicense, the following short list will give you an idea.
Bitcoin could do a lot of good in continents such as Africa, where there is a huge lack of financial services. This doesn’t mean the African population is not worthy of financial services, but institutions simply don’t expand there due to there being little to no profits to be made from doing so. Nigeria, on the other hand, is calling for Bitcoin regulation to counter money laundering and avoid international penalties.
The Bitcoin situation in Tokyo could very well shape the future of virtual currencies in Japan. Two weeks ago, the Tokyo District Court judged that Bitcoin are not subject to ownership. With the Mt. Gox investigation looming overhead, plenty of affected users were hoping to see a different outcome so they could recoup some of their losses. However, there are some vital points to be made regarding this judgement.
It was only a matter of time until the BitLicense regulation started claiming more victims in the Bitcoin mining industry. Not only are individual miners under the scrutiny of becoming money transmitters, but mining pools and even cloud mining providers could be affected as well. Genesis Mining, one of the very few legitimate cloud mining companies, will no longer accept customers from the New York state area.
The Bitcoin regulatory measures in the state of New York are causing quite a bit of controversy. Right now, there are more companies halting their service in this part of the world compared to the number of applications for a BitLicense. Even though regulation is necessary, too severe regulation leads to a mass exodus of companies. One of the few major Bitcoin companies completely unaffected by this regulatory measure is Bitcoin wallet provider Airbitz.
Bitcoin regulation is a topic of heavy debate around the world, especially since the BitLicense requirements were made publicly available. In the United States; every individual state can draft their own Bitcoin regulatory requirements, and it looks like California will be the next place to do so.
Bitcoin Regulation To Harm Innovation?
One of the main concerns surrounding Bitcoin regulation is whether or not local requirements will be beneficial to technological innovation in the digital currency space. There will always be different opinions regarding this matter, and in California, the pending Bitcoin regulation is causing a disruption between several parties.
BitLicense is the first proper form of Bitcoin regulation in the United States, even though most Bitcoin companies do not agree with the proposed requirements. Whereas several Bitcoin exchanges are leaving the New York state area, Bitstamp has announced they will, in fact, be applying for a BitLicense in order to comply with current regulations.
BitLicense Causes Lots of Controversy
Bitcoin regulation is still an important aspect for digital currency to be recognized as a legitimate form of digital money. Yet at the same type, the first revisions of Bitcoin regulation are quite harsh, especially as far as BitLicense is concerned. Applying for a license is expensive, and there is a thorough process every company has to go through.
Bitcoin is causing quite a few headaches for legislators and regulators all over the world. Even though some countries and US states have come up or are close to coming up – with a regulatory framework for Bitcoin, not all of them are positive, especially New York’s BitLicense regulation, which is causing an exodus of Bitcoin companies in the state. The latest company to leave is BitFinex, the largest US Bitcoin exchange platform.
Once the mainstream media picked up the news about the arrest of former Mt. Gox CEO Mark Karpeles, it was only a matter of time until the Japanese got involved with Bitcoin more strictly. If there is one thing Mt. Gox has taught us, it is that regulation up to a certain extent is needed, even though a lot of people perceive it as a “necessary evil”.
Mt. Gox Arrest Putting Things To Rest Once and For All
The arrest of former Mt. Gox CEO Mark Karpeles is a godsend for the Bitcoin community and affected users of the Bitcoin exchange’s collapse. After more than a year of fleeing from the policy and impending justice, Mr. Karpeles has finally been arrested and is currently awaiting trial for his past transgressions.
One of the main hurdles Bitcoin is facing right now is how government officials around the world want to legislate and regulate this disruptive digital currency and technology. A traditional approach to traditional financial institutions does not apply to Bitcoin, as this is a new and decentralized breed of technology. Maybe “The Law of Bitcoin” can shed some light on the manner.
The Law of Bitcoin – Bitcoin Legislation in A Book Format
Even if you are not a lawyer, not someone dealing with legal issues, The Law of Bitcoin might be an interesting book to pick up. After all, it is important to every Bitcoin enthusiast to know how some of the world’s most renowned lawyers view the digital currency and underlying technology.
Bitcoin regulation and legislation will remain a hot topic for many years to come, as various governments around the world are trying to figure out the best approach to this matter. In the United States, however, several regulatory actions are under way already, and a Bitcoin Bill for the state of North Carolina has come one step closer to completion.
The North Carolina Bitcoin Bill
In May of 2015, the Bitcoin Bill was passed in the North Carolina House of Representatives. Ever since that date, it was a matter of time before the Senate Commerce Committee either gave its approval or rejected the proposal. Late last night, news broke that the bill has received a stamp of approval, bringing the world one step closer to regulatory and legislative action against digital currency in North Carolina.
Bitcoin regulation is both a blessing and a curse, as regulators are trying to apply the same values and principles of traditional finance to a new breed of technology. However, that approach is not always beneficial to existing and up-and-coming businesses. In particular, New York’s BitLicense is raising a lot of questions.
Short Timespan To Complete Application
One of the main concerns surrounding New York’s BitLicense is the fact that existing Bitcoin companies have very little time to complete their application. If they fail or refuse, and continue their Bitcoin-related activity, they will be punishable by law for running an unlicensed business.
The world of Bitcoin and digital currency is plagued by regulatory uncertainty in certain parts of the world. The United States, in particular, could prove to be a rather difficult market to get into if businesses are not offering their services there already. Every individual state may regulate Bitcoin differently, which will harm business in the long run. The state of Wyoming is causing many concerns for Bitcoin-related businesses right now.
Switzerland is a well-respected country for its financial benefits. Not only does Switzerland offer more anonymity and privacy protection than any other country in the world, but they are also catching the eye of Bitcoin-related companies. The latest example comes in the form of Bitcoin company Xapo, who recently moved their headquarters to Switzerland.
Switzerland & Bitcoin – Interesting Combination
Over the past few decades, Switzerland has been synonymous with three things: watches, chocolate and being home to some of the world’s largest banks. Many people often refer to Switzerland as a “haven” for laundering money or conducting illegal financial operations, even though there are some rules even Switzerland has to adhere to.
London is viewed as the world’s capital of financial industry, and many Bitcoin enthusiasts assumed that this would make London the “major hub” for Bitcoin technology as well. However, things in the financial word have an odd way of playing out sometimes, and New York managed to claim a “world’s first” in the Bitcoin race. Not London, but New York launches the first fully regulated national Bitcoin exchange.
The great city of London, England, is bustling with activity in regards to the financial sector and Bitcoin is gaining more and more attention in that part of the world as well. With a US$5 trillion [a day] global currency market, London now also wants to become the home of one of the most disruptive technologies we have seen in the 21st century: Bitcoin.
British Authorities Supporting Bitcoin
One of the major hurdles to overcome in order to gain a foothold in any country is making sure the local government does not take up a negative stance towards your idea or technology. In the case of Bitcoin, this is a bit difficult to achieve, as there is no centralized representative who can plead his/her case with the government.
Several countries in the world are in the process of holding hearings in regards to Bitcoin and other digital currencies over the next few months. While a lot of focus is on Australia’s decision making, and the impending update on BitLicense, the New Jersey Assembly is moving things along as well. As of tomorrow morning, their first hearing on Bitcoin and new digital currency regulations will take place.
New Jersey Rises Up To Meet New York In Bitcoin Regulations