Boycott California?

That’s what the latest edition of the Bitcoin report recommends, as an answer to the strange Cease and Desist letter the California Department of Financial Institutions sent to the Bitcoin foundation. Thanks to this tweet by Roger Ver for the link.

Since the State of California looks like it wants to attack the Bitcoin network, the Foundation should bring their next conference to some other place, development of new business models should choose some other location than Silicon Valley, and the State of California should be made to pay a price for this (in the opinion of the “Bitcoin report”).

I’m not sure I agree with that.

At this stage, this “Cease and Desist” letter doesn’t state what exactly the regulators want. Eventually someone will explain to them that the Bitcoin foundation is not a Money Transmitting Business. And they probably will understand that, since it is very easy to understand.

While it is unfortunate that this kind of letter gets sent in the first place, it is still too early to call for any boycotts. That would imply that there is actually some basis in California law to this Cease and Desist letter. There is none.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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