Bitcoin Foundation ordered to cease operations in California (1 Viewer)

[DA60]

'Nonprofit organization devoted to promoting the virtual currency accused of transmitting money without a license.

The Bitcoin Foundation, a nonprofit organization devoted to promoting best practices for the virtual currency, has been ordered to cease operations in California.
The California Department of Financial Institutions, which oversees banks, credit unions, and other financial organizations operating in the state, sent a cease-and-desist letter (see below) last month to the foundation accusing it of "engaging in the business of money transmission without a license or proper authorization."
If found to be in violation of the California Financial Code, the Seattle-based foundation could be fined up to $2,500 a day per violation, in addition to criminal prosecution, according to Forbes, which first reported the story. The report noted that federal law prohibits engaging in money transmission without the appropriate state license or registration with the Treasury Department'

Bitcoin Foundation ordered to cease operations in California | Internet & Media - CNET News

 

[DA60]

Is this a major problem for Bitcoin's future growth?

 

[imagep]

Is this a major problem for Bitcoin's future growth?

Probably, the guberment doesn't want competition in the money printing industry.

 

[PeteEU]

Probably, the guberment doesn't want competition in the money printing industry.

Naw it is more that it can be and is used by criminals and terrorists to clean and move money across borders.

 

[csbrown28]

Probably, the guberment doesn't want competition in the money printing industry.

Ummm...It's the banks that will lose out, not the government.

 

[imagep]

Ummm...It's the banks that will lose out, not the government.

I understand what you are saying, but regardless of that, a governments don't want to have to compete with third party currencies. Our government does create the US dollar you know. Or maybe you didn't.