I see this as a major threat to general acceptance and doing business in Digital Currencies.
If the regulations are adopted any think like the proposed NY regulations, the compliance costs alone will exclude most small or start up businesses.
I think it same to assume that the regulatory framework in NY will be largely copied by other jurisdictions.
I believe the future of this in industry depends on service and infrastructure companies that will support the many legitimate uses of this technology.
All support Companies of any substance will have to comply to NY Regs. because of the legal risk, and the reporting and compliance costs will be too costly for all but a few large and well capitalized firms.
I believe this is the way that Politicians, Government, and main stream Financial Institutions hope to address the perceived threat from Digital Currencies.
No, or if so, it is a very poorly thought out method.If the regulations are adopted any think like the proposed NY regulations, the compliance costs alone will exclude most small or start up businesses.
I think it same to assume that the regulatory framework in NY will be largely copied by other jurisdictions.
I believe the future of this in industry depends on service and infrastructure companies that will support the many legitimate uses of this technology.
All support Companies of any substance will have to comply to NY Regs. because of the legal risk, and the reporting and compliance costs will be too costly for all but a few large and well capitalized firms.
I believe this is the way that Politicians, Government, and main stream Financial Institutions hope to address the perceived threat from Digital Currencies.
Because a small business will simply not comply, or will avoid doing business with NY. This is an "over reaching" attempt by NY to regulate businesses all over the world, by making their rules apply when an out of state business does business with a NY resident. Generally speaking, state law applies to a corporation or business entity when it has an office in that state, and only then.
The closest I can come to an analogy would be state law regarding state sales tax, or possibly state law about pornography distributed over the internet. In both of these cases product comes "into the state over the internet".
