With MtGox effectively dead, Bitcoin can now enter the third stage of evolution, explains BitGo CEO Will O'Brien in an extensive essay. More »
Erik Voorhees, a respected Bitcoin entrepreneur who created SatoshiDice and now runs Coinapult, shares his views about MtGox and the future of Bitcoin. More »
Hollywood could learn a lot from Silk Road 2 about heightening stakes and creating suspense in this epic whodunnit thriller where 4000 bitcoins were stolen! More »
In this extensive video, Bitcoin Leah interviews Brock Pierce, Alan Meckler, Sam Cole, and companies including BitGo, GoCoin, Lamassu and more. More »
Top Bitcoin News: CA v Foundation, Mt. Gox Halts Withdrawals, and More
Bitcoin News
A roundup of the top Bitcoin news from June 17 to June 23.
Tuesday, June 18
Saturday, June 22
Sunday, June 23
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.
Mt. Gox Halts US Dollar Withdrawals at Bitcoin Exchange
Mt. Gox Halts Withdrawals
Bitcoin exchange Mt. Gox has announced a temporary hiatus on U.S. Dollar withdrawals.
In a statement by the Tokyo-based company, the following explanation was given:
Over the past weeks Mt. Gox has experienced rising volumes of deposits and withdrawals from established and upcoming markets interested in Bitcoin. This increased volume has made it difficult for our bank to process the transactions smoothly and within a timely manner, which has created unnecessary delays for our global customers. This is especially so for those in the United States who are requesting wire transfer withdrawals from their accounts. We are currently making improvements to process withdrawals of United States Dollar (USD) denominations, and as a result are temporarily suspending cash withdrawals of USD for the next two weeks. Please be reassured that USD deposits and transfers to Mt. Gox will remain unaffected, as will deposits and withdrawals in other currencies, and we will be resuming USD withdrawals once the process is completed. We apologize for any inconvenience this causes our U.S. customers in the meantime, and look forward to resuming withdrawal service as well as debuting a dramatically improved trading engine which will be launching very soon.
Regards
Mt.Gox Co. Ltd Team.
Bitcoin Lasts as Other Digital Currencies Move On
Bitcoin is showing stamina as it outlasts other digital currencies.
In its fourth year of circulation now, the decentralized online-only form of money has evolved from a libertarian-styled geek curiosity to a contender for becoming the first digital currency to go truly mainstream. There are now more than 11 million “coins” created worth more than $1 billion. Lumpy and volatile as it is, the math-based cash is one of the fastest-rising alternative currencies in a world filled with them.
Tyler Moore, who studies alternative currencies, said he still isn’t sure why.
“It’s one part luck, one part decentralization, and one part this design that carries appeal for people that don’t like inflation,” said Moore, an assistant professor of computer science and engineering at Southern Methodist University in Dallas. “The timing of it was really good.”
Bitcoin slipped onto the scene in 2009, as trust in established banks crumbled and inflation fears rose. It’s not managed by anyone. There’s no central bank. It’s based on open-source encryption technology.
In fact, the digital cash can be created by anyone with the hefty computer power required to solve specified algorithms that secure the network. Bitcoins are rewards for effort. The system takes banks out of the picture completely as individuals pay each other directly. Transactions are private, but because there’s a public ledger of them, it’s unlikely they are perfectly anonymous.
Via Buffalo News.
Top Bitcoin News: Domains Seized, Bitcoin Tipping, Australian Retail
Bitcoin News
A roundup of the top Bitcoin news from June 3 to June 17.
Wednesday, June 5
Friday, June 7
Saturday, June 15
CC image by JefferyTurner
