Let's talk BitLicense and decentralization

Ben Lawsky announced the latest revisions to the draft BitLicense today.

Quote from Coindesk:

Lawsky first clarified which players in the digital currency community and industry would be required to obtain the BitLicense, specifying that the NYDFS intends to regulate only financial intermediaries.

Software developers, miners and those who issue loyalty and rewards schemes and gift cards denominated in fiat currency will not be required to obtain a BitLicense – nor will sole individuals who buy and hold virtual currency for personal investment, virtual currency-accepting merchants or their customers.

Lawsky also announced that the NYDFS has shortened the proposed record-keeping requirement for licensees from 10 to seven years, and eliminated a requirement that licensees must obtain addresses and transaction data for all parties in a transaction.

Licensees now only need to obtain that information “for their own customers or account holders” and, to the extent possible, for “counterparties to the transaction”, according to the superintendent.

http://www.coindesk.com/lawsky-outlines-revisions-new-yorks-bitlicense-dc-speech/

According to this information, every money transmitter (changetip, dogetipbot, etc) will be require to obtain their customers private information (name, address, ID verification) to stop money laundering. They will also be require to keep every transactions for a period of 7 years.

Software developers (Reddcoin) will not be required to obtain a BitLicense. Decentralization win once again!

What are your thoughts on Bitlicense? Good or bad?

How about ReddID-based tipping system? It’s not possible to regulate that now is it?

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Toxip Redd-ID is a blockchain protocol so it allow us to create a 100% decentralize tip platform. Because we are 100% decentralize, we are not a money transmitter since we never hold your private keys. As a result, Reddcoin will not require a BitLicense unlike other centralize tip platforms.

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Shared this with bitcoinblake on twitter, and he thinks its pretty rad, and faved it :slight_smile:

Cant seem to get links to post though.

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Dan Here it is, good job!

https://www.twitter.com/xhale2007/status/545664206423744513

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DogeDump Thanks!

Why can I not get it to post links :confused:

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Reddcoin that’s what I thought, thanks for confirming! I don’t like any attempts to regulate cryptocurrencies because it was designed to break free from regulation. Can’t say it’s a bad thing though. Money laundering is bad so if it helps in fighting that, sure but if we used cryptocurrencies instead of fiat, we wouldn’t have fake money and money laundering in the first place.

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Yes is good for us! But will not affect any coin project not even bitcoin… In my real implementation of his words.

The major thing is that the capital of US money needed “something” defined by law before Wall Street starts playing again. And normal consumer get the idea that “now there is regulation! It’s safe to trade…hohohoh”.

The law is a joke they are targeting exchanges… like what?! Wall street I know! Millions entry to this “markets” next year… and clearly this was a necessary move. People would not want their millions arrested.

The implications for wall street with this “regulation” are that we can do business with this cryptos tha same way we made averyday… nice! Soon as is official I expect to see a lot of big players in the scene. Making piles of money with world wide exposure from this technology. It is good overall if you are involved with this projects crypto but countries will suffer as the dollar will get stronger and stronger.

It is clever: you put a puppet provoking everybody who holds bitcoin, first he states that he wants to know everything but in the end he say… Nah I like you too much. I was a duch. Banks are old folks! We are going to just exchanges (I read Wall Street)… inside the financial capital means funny money world wide. Here we go but now is instant and worldwide… :wink:

Aside from this theory that I think is quite interesting… I come to the Article about regulation…

If you really want to regulate you go to point of sales. You think exchanges but the easy one are banks institutions. If you already control a system and if you want to know for sure that. From fiat to any cryptocurrrency on the bank side as well.
But the old folks do not want that… cause Paralell economy needs to exist unfortunately.

Thanks mate! Sorry for the wall…

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Well well… seems like decentralisation is once again proving its weight in gold - there will be some interesting discussions to be had when Reddcoin goes main stream - mainly running along the lines of “well… how the hell do we regulat/tax this one then” - muhahaha

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