Comments are now closed due to spamming and personal attacks.

Twitter: https://twitter.com/huffpoclub

Breaking News

California sends a cease and desist order to the Bitcoin Foundation

Posted on Monday, 24th June 2013 @ 02:36 PM by Text Size A | A | A

Licensing is required for money transmissions in-state; Bitcoin denies such activity.

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.

Jon Matonis, a member of the Bitcoin Foundation’s Board of Directors, wrote up the news for Forbes. Matonis defended the Bitcoin Foundation’s actions during its time in California:

One activity that the foundation does not engage in is the owning, controlling, or conducting of money transmission business. Furthermore, that activity would also be against the original charter of the foundation. As general counsel for the Bitcoin Foundation, Patrick Murck has lead responsibility for corresponding with the California Department of Financial Institutions.

At this stage, it’s difficult to tell whether or not it was a general blanket action and if other bitcoin-related entities received cease and desist letters from California. If Bitcoin Foundation was not the only recipient, then expect other companies to come forward in the days and weeks ahead.

This isn’t the first time a payment service has run into state-level cease and desists. In March, Square received a similar letter from Illinois (PDF). Illinois claimed Square was not observing the state’s Transmitters of Money act because it did not have the proper licensing.

The letter Bitcoin received is dated May 30. It states that the foundation has 20 days from the issued date to inform the states of steps taken to comply. Matonis did not address if Bitcoin took such actions in his Forbes piece.

 

Related News On HPUB:

  • Last Call to be the World Leader in Outer Space. by Daniel Bruno

    Last Call to be World Leader First posted: 03/18/2010 at Huffpo “Where is that moon, that leads to your soul?” – Aromabar     Legend has it that Kaguya descended from a race of moon…

  • Electoral Science: The Winner of the 2016 Election Will be a Republican

    Originally published at Washington’s Blog in April, 2016   by Daniel Bruno   Electoral Science: The Winner of the 2016 Election Will be a Republican I was the first person in the world to proclaim…

  • Report from Rio

    Report from Rio Daniel “No Passport” Bruno, reporting from Rio de Janeiro. Daniel is from Manhattan, is an author, inventor, specialist in 9/11 studies, and the interview host at www.hpub.org which publishes over 1000 censored…

  • Join the Radical Republican Party

    The Radical Republican Party RRP aims to retire the two party system. Congressional approval ratings hover around 8% yet most members are re-elected over and over again. The old definitions of liberal and conservative, left…

... post your own so far 0 comments

Comments

No comments yet.

Leave a Comment

You must be logged in to post a comment.

 
  • Hpub asks

    • Will Trump Survive to January 1, 2018 ?

      View Results

      Loading ... Loading ...
  • Breaking News