California Sends Cease and Desist Letter to Bitcoin Foundation
California Goes After Bitcoin Foundation with Cease and Desist Letter
The State of California has concerns about Bitcoin.
The California Department of Financial Institutions has sent a cease and desist letter to the Bitcoin Foundation for engaging in the “business of money transmission without having obtained the license or proper authorization required by the California Financial Code.”
The penalties are severe, according to Forbes who first broke this story:
If found to be in violation of California Financial Code, penalties can be severe ranging from $1,000 to $2,500 per violation per day plus criminal prosecution which could result in fines and/or imprisonment. Additionally, it is a felony violation of federal law to engage in the business of money transmission without the appropriate state license or failure to register with the U.S. Treasury Department. Convictions under the federal statute are punishable by up to 5 years in prison and a $250,000 fine.
Below is a copy of the actual cease and desist letter. The Bitcoin Foundation has 20 days to respond in writing.
Via Forbes.
[...] a warning is BitInstant. We also reported last week that the State of California issued a cease and desist letter to the Bitcoin [...]
[...] few weeks back, the California Department of Financial Institutions sent a cease and desist letter to the Bitcoin Foundation for engaging in the “business of money transmission without having [...]