Is Bitcoin a Flash in the Pan?
May 16, 2013
The Treasury Department has moved to rein in Mt. Gox, the world’s largest exchange for the all-digital currency Bitcoin. The move raises the specter that the government is intent on eliminating anonymous Bitcoin transactions, which could dramatically reduce the currency’s allure to many users.
Related article: Bitcoin Exchange in U.S. Crosshairs Banked at Wells Fargo
-
Technology -
Technology -
Technology -
Technology -
Technology
This doesn't remove the anonymity of Bitcoin (pseudonymity, really). All it does is require registration and compliance as a Money Transmitter for anyone who is performing that function (like the exchanges). There are plenty of companies who are doing that now, and have registered.
Mt Gox had a US subsidiary, whose funds were seized. US, not Japan. If you want to operate in the US, you are subject to US law. This is nothing new.
Exchanges need to collect information about people who are performing large transactions ($10K and greater). This is nothing new. The new part is that Mt Gox's subsidiary didn't declare themselves to be a Money Transmitter, and perform the registration steps (and presumably pay the fees).
Nothing fundamental about Bitcoin has changed. And in fact, this causes incentive for US-based customers to move to other exchanges, which is good for Bitcoin.
But you did a good job of spinning a minor issue with ONE COMPANY into a major issue projecting the failure of Bitcoin. Good job. You should get lots of hits for that, and make money off your advertising.