BitLicense Will Allow Bitcoin Spying in New York

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Alvin Bryan

Alvin Bryan is a freelance writer and online privacy enthusiast enthusiast currently contributing quality tips and troubleshooting on personal VPN services, and online privacy and security news. You can also find him on Google +.

The authorities in New York want BitLicense, a license that will allow Bitcoin spying by the state. New York state will spy on everyone who uses Bitcoin by the powers that BitLicense gives them to force Bitcoin services to require and record credentials for Bitcoin users.

BitLicense Destroys User Privacy

Bitcoin Spying TrackingBitLicense is a very dangerous idea. Internet users have been working hard to regain online privacy. This licensing process will destroy that right for people yet again. Online privacy groups like the EFF are calling on Internet users to speak out against BitLicense to try to stop the proposal before it get past the Department of Financial Services in New York. If New York succeeds in making Bitcoin users get a license, the idea will soon spread to other stares. The use of BitLicense in New York will create a precedent for the application and use of licenses for other virtual currencies, too.

Bitcoin and virtual currencies in general is a great idea because it allows online transactions that are private and safe when used with VPNs. They are also safe for people who live and work under repressive regimes. Bitcoin is so effective that China went to great lengths to prevent its use. It can defeat censorship and protect people who would otherwise be oppressed by their governments. If New York state successfully institutes BitLicense, Bitcoin will no longer be able to provide these benefits. The authorities say that they want BitLicense so they can monitor transactions related to money laundering. The problem is that once again, this type of regulation has the potential to harm many more people than it helps. Regulation could also kill the as yet unmapped potentials of virtual currency.

BitLicense Bitcoin Spying Powers

Bitcoin Spying DataNew York must not be allowed to use BitLicense. BitLicense forces Bitcoin pioneers and innovators to get licensed before they can deal in the virtual currency. The big names in the industry don’t like it. This means that they must do background checks and get fingerprinted. Anyone playing around with virtual currency technology is part of New York state’s BitLicense plan.

After this licensing process, all these companies who are involved with Bitcoin will be forced to mine user data or lose their licenses. No matter how small a Bitcoin transaction may be, it will have to be recorded and linked back to the user. Bitcoin users will have to give up very personal details such as their full names and real home and office addresses. The companies will then have to store the data for ten years according to the BitLicense proposal. This opens up Bitcoin users to hacks that will reveal their personal data to hackers and thieves who are very hungry for the very valuable currency.

Update:

NYDFS head Benjamin Lawsky changes his mind about virtual currency payments and inventments.

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