[cryptome] Re: NYS bitcoin trading regulations

  • From: "Douglas Rankine" <douglasrankine2001@xxxxxxxxxxx>
  • To: <cryptome@xxxxxxxxxxxxx>
  • Date: Fri, 5 Jun 2015 23:47:20 +0100

Hi Andrew,

Andrew said<<<

The first step is regulating it, the next step is taxing it - if one doesn't
take Bitcoin out of existence, the other will.



License to deal in virtual currency itself is $5,000 - wonder if they'll take
that in Bitcoin?



You're also forced to give up all of your books upon request... which shows who
you're dealing with, etc. This'll just force folks to stay out of NY State if
they want to stay anonymous and deal in Bitcoins... >>>end of quote.



In part 1 of Assassination Politics, Jim Bell raises 2 points, which he goes on
to discuss.

Quote<<<

1. How can we translate the freedom afforded by the Internet to ordinary life?

2. How can we keep the government from banning encryption, digital cash, and
other systems that will improve our freedom?

End of Quote

Now, whilst I have no answer to these questions. I am, at the present time,
more interested in the second, if only because it is topical and the topic is
on the move. Most governments no longer ban encryption, and they are
legalising digital cash...the question is, by doing so, are they improving our
freedom? Now, I realise that the article was written many years ago, and
events have a habit of turning our hypotheses, beliefs and projections into
mincemeat, and sometimes, getting what we wish for can be just as bad as not
getting what we wish for... J. I don’t know what other systems Jim Bell is
thinking about, but the question remains, is the legalisation of encryption and
digital cash, increasing our freedom or limiting it? Now, I know that we can
also get into a discussion about the meaning of freedom, and all I will observe
at the moment, is that freedom is like the difference between truth and
propaganda, it lies not only in the eyes and ears of the beholder, but in their
individual perceptions and beliefs about what constitutes reality. Be that as
it may. States are recognising digital currencies, to a greater or lesser
extent.

Why? Well, there are a number of reasons, not limited to the following: It has
certain advantages regarding privacy, security and anonymity of transactions.
More people are using it. Financial institutions can see the benefit of using
it in an international, electronic and digital world, where money, can be
transferred very rapidly, at home and abroad, to the point where computers
using algorithms, can, for instance make millions of trades on the stock
exchanges all over the world in a second. The present system of many national
currencies and the need for conversion, is very inefficient and costly.
Digital currencies such as Bitcoin could be used for doing these fast
transactions, with the coin only converted into the national currency at the
point of purchase or sale, so realising its value. For such a system to work,
would require some stability, security, privacy and anonymity in the system.
The more people and organisations which use it, the more lucrative and taxable
it becomes.

Some of the disadvantages using such a system, as far as nation states are
concerned, as well as the general public or the individual, is on the question
of anonymity, how does one prevent it from being used by criminals and for
criminal purposes, and on the question of how the system and the rate of
exchange can be controlled without that control having to be centralised, or
put in the hands of a few. At the moment, nation states have grave difficulty
sorting out money laundering particularly when it comes to those tax free
havens. One can trace the transactions going in, and one can trace the
transactions coming out, but they can’t trace what happens in the washing
machine in the haven. Increasing global trade, and controlling the world’s
financial system is no longer the prerogative of the United States. With the
development of the economies of other nation states and groupings, such as
China and India and the European Union, and other states in the Far East like
Indonesia. Now these are some of the ideas and questions I have been thinking
about on this subject...there is more to come...but I will leave it that, as
others may wish to present a view...

ATB,

Dougie.







From: cryptome-bounce@xxxxxxxxxxxxx [mailto:cryptome-bounce@xxxxxxxxxxxxx] On
Behalf Of Andrew Hornback
Sent: 05 June 2015 21:10
To: cryptome@xxxxxxxxxxxxx
Subject: [cryptome] NYS bitcoin trading regulations



On Fri, Jun 5, 2015 at 3:52 PM, Douglas Rankine
<douglasrankine2001@xxxxxxxxxxx> wrote:



[snip]



P.P.S. I see that New York State is issuing licenses for trading in Bitcoin.
Presumably trading in Bitcoin without a license will become unlawful...if so,
that is a turnaround... J.

see url: http://cryptome.org/2015/06/nys-bitlicense.pdf

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