Bitcoin conference enters its second day in San Francisco today. The buzz from the New York Department of Financial Services regulations to the future of bitcoin is on topic, reported Coin Desk yesterday.
Adam Draper of VC Boost kept his comments about the NYDFS proposed regulation to the point that it “sucks.” The BitLicense and other details of the NY regulations present a situation worse than bank regulations according to Draper.
Benjamin Lawsky, Superintendent of NYDFS has contended since the beginning of the year and talks on bitcoin regulation that it would be a good open for merchants. The wary consumer buyer would be more willing to use bitcoin in purchases if regulations were in place.
James Robinson, of RRE Ventures offered his assessment which is the other side from Draper in that he believes that the consumer needs bank protection and consumers will continue to choose banks over BTC. Robinson added: “You may not like [banks], but you know that your money will be there tomorrow.”
Draper has 12 of his newest VC Boost group Tribe4 in bitcoin startups. He is committed to success. Draper has shown ownership of venture capital startups with success in the past.
The conference last week-end in Chicago and the conference today in San Francisco has opposing views on how much regulations such as the NY proposal wills stifle venture capital.
Michael Terpin, founder of PR service Marketwired of Toronto, Canada stated that negative news sells and the media puts it out quickly. It is a reality of business. The days of the wild west are disappearing for Bitcoin and the responsible actions of venture capital leaders and more positive news is out there for bitcoin transactions.
Tim Parsa, CEO of BitReserve, said, “Anything you fight, you make stronger.”
Dan Wheeler, a regulatory partner at Bryan Cave LLP, takes the regulation rules very seriously. Wheeler said: “This is an area that the regulators are very good at. They are very sophisticated in looking at KYC (Know Your Client) programs. And unfortunately there are consequences for not doing it right.” The ghosts of SEC and FINRA based KYC rules are very much on the minds of the savvy bitcoin exchanges.
Jose Caldera made a very penetrating and debate worthy point about bitcoin by discussing the IRS ruling of bitcoin as an asset. The IRS applies the capital gain/loss rules to its transactions. He said, “I think it deserves its own financial asset class. That’s why it’s property, that’s why it needs that classification.”
Debate and rulings on bitcoin will be heated and heavy but it is the cryptocurrency of the Internet. Bitcoin is a new paradigm. It is time to recognize and embrace the future ahead for bitcoin. Leaders like Tim Draper will be out in front.
Bitcoin is lawful money in California; signed into law by Governor Jerry Brown in June.
“In an era of evolving payment methods, from Amazon Coins to Starbucks Stars, it is impractical to ignore the growing use of cash alternatives,” Democratic Assemblyman Roger Dickinson, the bill's author stated to Coin Desk earlier this year.