mk, ecib It says that the companies will be regulated as if they're banks. I'm not sure what that entails. $5000k is not that big of a barrier to entry, but when you have to pay that in 50 states... Now we're talking a quarter of a million. Add in the legal fees associated with a state by state registration and you're closer to $1m. Thoughts?Just last month, North Carolina's House of Representatives approved a bill calling for specific digital currency regulation. Similarly to California's bill, House Bill 289 is currently undergoing review in North Carolina's Senate.
My thoughts are NC is moving forward with digital currency regulation. NY has its own in Bitlicense. We're still left with the problem intact...a wildly and costly uneven patchwork of disparate regulation spread across multiple states. It would be nice if it were just federal, or a bulk of states mimicked the regulation of another...not the case unfortunately.
I'm not sure where $5000 lands on the scale of bank application fees but I am always super wary when legislators try to restrict Bitcoin. It really won't do much except hamper innovation and restrict startups.
Yeah, but the thing is, BTC startups need to have some clear regulation or NO regulation. Right now it exists somewhere in the middle and the problem is no banks will do business with BTC companies. No credit card processors will touch them either. It's impossible to have a BTC company without a bank. Right now they're regulated like money transmitters which means you need to be a registered money transmitter in all 50 states to run a successful business. It's WAY expensive to do. HUGE barrier to entry.
I agree. Another problem (which seems to be a running theme in politics nowadays) is politicians have little understanding of these technologies they are trying to legislate and are causing bigger headaches because of this.
Truer words have not been spoken, my friend. That said, check out how open to the concept the Canadian government was: A fascinating video, if you get a chance. If only the US would hold such a hearing and ask such good questions.