The BitLicence now has one more opponent, and it’s a big one.
The Electronic Frontier Foundation has started a campaign in opposition to the BitLicence, citing its requirement for Bitcoin-related services to essentially spy on its users.
They call the BitLicence “bad news for privacy and free speech”, but urge users to take action, as we have a chance to “change the proposal or even stop it altogether.”
Major Issues
The Electronic Frontier Foundation takes issue with the BitLicence for several reasons.
One is its broad scope. The supposed thought behind the BitLicence is to protect individuals from fraudulent and poorly-run money transmitting and financial services. However, “far more than just money services” will need a BitLicence.
NYDFS Superintendant Benjamin Lawsky did say in a talk at Cardozo law school that regular Bitcoin users and miners will be exempt from having to hold BitLicences, though.
They are also concerned with the infringement of privacy the BitLicence would bring. BitLicenced companies would have to collect data on their users including their full name and residence. This defeats the purpose of Bitcoin in the first place, since one of its greatest benefits is its pseudonymity. “So while individual users may not need a BitLicence, their privacy will be seriously affected.”
This issue also means that users will need a physical address in order to use Bitcoin-related services, which means those in impoverished nations will be restricted from using Bitcoin. This point was previously brought up by Digital Currency Council member David M. Long.
They also believe it will cause a barrier to entry for startups, since anyone who wants to start a money-related cryptocurrency business will have to undergo background checks, and even submit fingerprints to the government.
Take Action
The Electronic Frontier Foundation concludes by saying
Virtual currencies like Bitcoin have the potential to be privacy-protective and censorship-resistant, but the proposal from New York could undermine all of that. New York is pushing this regulatory framework under the guise of combatting money laundering, but it will affect everyday users and small businesses that have done nothing wrong. Perhaps worst of all, it could stifle a fledgling privacy-enhancing industry before we even know what virtual currencies could help launch.
They’ve created an email campaign where bitcoiners can send a message to Superintendant Lawsky and General Counsel Dana Syracuse informing them of their opposition to the BitLicence and their support of the EFF’s thoughts on the matter. To take part in the campaign, click here.
Electronic Frontier Foundation Joins The Fight Against The BitLicence
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