Topic: Bitcoin is now officially illegal (Read 2865 times)

It impacts the exchanges. The SEC has established that Bitcoin is a security without their jurisdictional purview. As such, they can fine and/or refer to the DOJ the issuance and broker/dealing of these securities -- the latter being a function that, for legal purposes, the exchanges and purveyors like Coinbase currently fit.

As for individual trades -- no, those are secondary transactions and the SEC has not established jurisdiction in relation to individual investors who are targets, not broker/dealers, of the security. Bitcoin activities undertaken by individuals in their own account are not illegal at all. The exchanges, however, could be fined or forced to shut down at some time in the future -- figure about a year out into the future because the feds drag their feet.

One of two things will happen -- either (a) everything will have to fall within an ETF type format; or (b) the exchanges get shut down and people must trade their stash amongst each other without the exchanges.

It's still tremendously bad news for BTC. Note that although the SEC has established this jurisdiction, they may eventually choose to relinquish regulation to the CFTC or choose to give it some other special treatment. This actually wouldn't surprise me because they'd be doing more damage to existing users of BTC if they came in guns blazing at this point -- they are late to the party and the SEC is actually pretty decent about recognizing as much.

It's something to watch.

have a look at the mycelium app, if your government shuts down localbitcoins with stupid laws

It is illegal to move large amounts of money as a business without license. Its similar to currency exchange which is illegal without a license. This does not affect transactions between individuals as long as the transaction is reported in your taxes etc.

This in no way affects the price of Bitcoin and Bitcoin will only continue to rise in value over the years due to limited supply and growing adoption.

By the way... this is the relevant news. SEC has exerted jurisdiction, successfully, over this sphere. This, by definition, requires changes in the BTC ecosystem. The exchanges may be subject to registration requirements, they'd likely have to register even if foreign if they target U.S. customers in any way, and egregious violations can be referred to the DOJ. This is not the end of crypto and might actually be a positive development in the bigger scheme of things. BUT, it probably suggests that the bucket shop exchanges won't last through 2015.

Note: The fine was fairly minimal, but that part is irrelevant. What is legally significant is that the SEC was able to secure a judgment and create precedent for jurisdiction over cryptos. Again, this is actually a very big deal.

http://www.coindesk.com/sec-bitcoin-exchange-60000-securities-violations/

The bucket shop exchanges will be gone now that the SEC has exerted their authority to regulate them. It doesn't, however, mean that BTC or other cryptos won't remain. In fact, it may ultimately be a positive for cryptocurrencies. The existing exchanges, however, will likely cease to exist within the next year or two and be replaced by more reputable ones.

They've done studies on countries that have relatively unregulated v. relatively regulated securities and they've found that the prices are higher in countries with regulated securities because, simply, regular folks are more willing to adopt them knowing they have a form of recourse. The cryptos themselves as well as their day to day uses can remain decentralized while still having exchanges that are themselves subject to regulation. It would be a real positive. We'll have to see how it unfolds, though. It would be wonderful if the exchange scams stopped, though, in my opinion (even though that would cost me money because I've done well shorting this year).

This is good, all official institutions fighting bitcoin will only make bitcoin more fascinating to people. Who is cheering for the NSA saying its illegal to download movies and shuting down download sites? this is the same.

did anyone of you guys manage to realize from when the article was?

@fewcoin

good job bro  


/edit

pleople can do the same with fiat, or i'm wrong?

what's the difference of fiat vs btc.... oh wait... isn't controlled by banks.

Just don't sell the coins if dude is saying he will use it to buy drugs or hire hitmans.

It not hard and does not means BTC is illegal

fuck fiat $ 

Perhaps he is paid by the by the signal-noise ratio rather than the content.

Agreed. Someone needs to buy a better troll.

My take is you don't have a lawyer, nor are you a millionaire trader, nor do you have multiple businesses or 350 coins to play with. I would also guess that you are under 25 years old and have no real assets to speak of.

Finally!!! Thank you somebody who understands law that I can reason with. My lawyer has personally said this scam would be completely gone in no more than 10years and looks like he might be right! What is your take on this?!

This was actually bigger news than people caught on to -- I am a lawyer by training -- because it was a move by the SEC to assert authority to regulate exchanges pursuant to the '33 Act (Securities Act). Notably, SEC can only exact a civil punishment. However, violating the '33 Act can carry criminal punishment on factual findings (by a jury of course) identical to the SEC's administrative findings should the SEC refer the matter to the DOJ. Moreover, the '33 Act allows for regulating foreign exchanges and securities if they target U.S. customers. Basically, the door has been swung wide open for the Chinese exchange as well as Stamp, BTC-e, BFX, and others to face civil and criminal sanction for issuing unregistered securities.

So yes... this is a very big deal. It leaves the nuclear option to the U.S. government should BTC actually succeed as much as the bulltards suggest that it will obviating that possibility in its entirety. BUT, they'll never go after these guys with criminal sanctions because this horse and pony show is not really going anywhere. They've got bigger fish to fry.

Oh yes, and the fine, not just the existing of the proceeding, creates legal precedent for the SEC having this jurisdiction. The question was whether or not the SEC actually had jurisdiction to carry out the proceeding (the start of which was the February news) to its conclusion (this news) or whether the matter would be tossed. It is clear now that they do, indeed, have jurisdiction... not just the listless CFTC.

^ February??? Are you retarded???


DENIAL IS A SICKNESS THAT WILL CAUSE ALL YOU BUYERS TO LOSE ALL YOUR MONEY! WAKE UP WHILE YOU HAVE A CHANCE!!!

A news from February   

It isn't a sick bird? It's a barmaid?

Pour us a pint wench.

 

It isnt ilegal, its alegal.

^Grampa pops diaper 'coz people quote me