State of New York Converts Digital Rights to Use Bitcoin into Privilege with a License for a Fee in Violation of Legal Precedence

The State of New York has converted Digital Rights –using Bitcoin, “virtual”-digital currencies and Block-chain technology– into a privilege with a License for a Fee.  The New York Department of Financial Services called it a BitLicense and is “required” for all businesses transacting Virtual Currencies like a bank.

The goal is to “regulate bitcoin and virtual currencies.”  However, there is nothing “legal” about virtual currencies.  Digital Currencies are entirely NON-LEGAL and only LAWFUL.  The NY-DFS has been sneaky about it too:

A business must obtain a BitLicense if it engages in virtual currency business activity involving New York State or persons that reside, are located, have a place of business, or are conducting business in New York.

Such regulation “shadow bans” all “STATE OF NEW YORK ARTIFICIAL PERSONS/CITIZENS” from various digital currency networks.   See The Real Cost of Applying New York BitLicenses.

Frost estimated the [BitLicense] application cost Bitstamp roughly $100,000, including time allocation, legal and compliance fees.

Legal precedence calls it a crime to convert Basic Human Rights into a Privilege with a License for a Fee.  The unlawful conversion of rights into a privilege is the affirmed lawful and legal premise for the “Right To Travel” vs. the adhesion contract providing the “Privilege to Drive.”  The right to live without life itself being LICENSED back to us  has been affirmed by the U.S. Corporate Supreme Court:

“No state shall convert a liberty into a privilege, license it, and attach a fee to it.” Murdock v. Pennsylvania 319 U.S. 262
“If the state converts a liberty into a privilege the citizen can engage in the right with impunity.” Shuttlesworth v. Birmingham 373 U.S. 262
“If you’ve relied on prior decisions of the Supreme Court you have a perfect defense for willfulness.” U.S. v. Bishop, 412 U.S. 346

Conversion of basic Digital Rights into a privilege requires special authorization/permissions.  This is where the FOIA (in NY its FOIL) requests comes in.

The Governmental Services Corporation Watch blog filed a FOIL request with the NY DFS requesting the “Bitcoin Regulatory License” that grants the New York State Department of Financial Services the authority to regulate such [Common Law] Digital Currencies (legally named “VIRTUAL CURRENCIES” to reduce their legal appeal).

Here is the New York State Department of Financial Services Response to the request for their “Bitcoin Regulatory License”:

“The DFS has no documents responsive to your request.  There is no ‘Bitcoin Regulatory License’ that grants the DFS authority to pass [Ed- operate] a regulation.”

It’s clear that the New York Department of Financial Services is only interested in limited the Digital Rights of “New Yorkers” in favor of the International Bankers who own and run New York City, the State of New York, Hillary Clinton, Donald Trump, the United States Inc, etc.

Not Just New York– State of California

Meanwhile, the usage of Digital Currencies in the State of California has been VERY HOT.  Bitcoin Regulation in California has already been brought up twice and shot down both times.  AB 1123 was the third attempt and was similar to New York’s BitLicenses.

“This bill would require each licensee to maintain at all times such capital as the commissioner determines, subject to specified factors, is sufficient to ensure the safety and soundness of the licensee, its ongoing operations, and maintain consumer protection,” reads the legislation for AB1123. “The bill would require each licensee to maintain a bond or trust account in United States dollars for the benefit of its consumers in the form and amount as specified by the commissioner.”

The CORPORATE BILL MAKERS have announced how to gain their DEBT leverage foothold into Digital Currencies.  Governmental Services Corporations seem to feel the need to be the UNDERWRITER of DEBT for the BENEFIT of DIGITAL CURRENCY INSURANCE.  THIS CANNOT BE UNDERSTATED.

Despite this, any corporation has the right to issue an unlimited amount of debt speech to themselves for the purposes of “insurance;”  effectively making all corporations “self-insured.”  In actually knowing what debt is and how it works, “insurance bonds” for Virtual Currencies can be totally avoided by business.

California Dusts off Virtual Currency Act à la NY’s BitLicense   2017.04.25

Policymakers continue to oppose bitcoin and cryptocurrencies in certain regions of the world. California legislators have tried to introduce their version of BitLicense a while ago. Luckily, those plans were shot down relatively quickly, not once, but twice. It appears a new proposal under the name AB 1123 has come up, with touches upon the topic once again. This bill needs to be opposed by the people once again.

It was to be expected Californian policymakers would not give up on opposing bitcoin so easily. Assembly Member Dababneh is a clear opponent of cryptocurrency as a whole. His new Assembly Bill 1123 aims to once again thwart bitcoin usage in the state. …

To be more specific, AB 1123 is capable of bringing the bitcoin use to a near halt in the state. Dababneh’s wording can be interpreted in many different ways. However, it leaves little to the imagination of how bitcoin startups would be nearly outlawed. Moreover, businesses accepting bitcoin would need to meet additional regulatory requirements. Donations in bitcoin or other cryptocurrencies would be subject to harsh guidelines as well.

Solutions

If Digital Currencies are important to you: consider writing a brief Note to the New York DFS about their BitLicenses through their online e-FOIL form:

https://myportal.dfs.ny.gov/web/guest-applications/ogc-foil-e-form

Maybe write something like this in the FOIL Request box:

Dear NY DFS,
This is a FOIL REQUEST for the “Virtual Currency Regulatory License” that allows your Corporation to operate the “regulations” that violates legal precedence and Digital Rights -via Color Of Law-:

“No state shall convert a liberty into a privilege, license it, and attach a fee to it.” Murdock v. Pennsylvania 319 U.S. 262
“If the state converts a liberty into a privilege the citizen can engage in the right with impunity.” Shuttlesworth v. Birmingham 373 U.S. 262
“If you’ve relied on prior decisions of the Supreme Court you have a perfect defense for willfulness.” U.S. v. Bishop, 412 U.S. 346

Without Expressed Authority (Title 4 U.S.C. §72) and given the above legal precedent, the NY-DFS is not allowed to convert [Digital] Rights into Privileges for a License with a Fee.  This is your Constructive Notice to the NY-DFS to immediately cease and desist all BitLicense activity that violates legal precedence and refund all issued BitLicenses.

It is a pleasure conducting business with you.

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