bitcoins

Bitcoin Foundation ordered to cease operations in California

The Bitcoin Foundation, a nonprofit devoted to promoting best practices for the virtual currency, has been ordered to cease operations in California.

The California Department of Financial Institutions, which oversees banks, credit unions, and other financial organizations operating in the state, sent a cease-and-desist letter (see below) last month to the foundation accusing it of "engaging in the business of money transmission without a license or proper authorization."

If found to be in violation of the California Financial Code, the Seattle-based foundation could be fined up to $2,500 a day per violation and face criminal prosecution, according … Read more

Feds don't plan to take down Bitcoin or other currencies

Even though the feds went after Liberty Reserve for alleged money laundering, they apparently don't have plans to crack down on all digital currencies -- as long as all rules are followed.

In an interview on Thursday with American Banker, Jennifer Shasky Calvery, the director of FinCEN, which is the U.S. Department of Treasury's law enforcement branch, said she sees virtual currency providers as financial institutions and looks at each one's actions separately.

"FinCEN has been out front in issuing our guidance to make it clear that we see virtual currency as a type of … Read more

Computer visionary says he knows who invented Bitcoin

The inventor of Bitcoin has been shrouded in a mystery so complete, it's baffled even core developers for the virtual currency. Who is Satoshi Nakamoto, the pseudonym for the person or group of people who came up with the original idea for the electronic cash system in 2008?

After contributing thousands of lines of code and hundreds of posts on Bitcoin, Nakamoto sent a note to a developer in April 2011 saying that he had "moved on to other things." Later that year, the New Yorker and others tried to unravel the mystery, but came away empty-handed. … Read more

Winklevoss twins on Bitcoin: Time to work with the Feds

SAN JOSE -- The Winklevoss twins, who transformed a lucrative Facebook payout into a venture capital fund, say it's now time for Bitcoin companies to work with governments rather than against them.

Cameron and Tyler Winklevoss, the twin Harvard graduates famously portrayed in the 2010 film "The Social Network," showed up at the Bitcoin 2013 conference to talk up the future of what is the Internet's favorite alternative currency -- as long as it escapes a government crackdown.

"I don't think anyone wants a fight -- I think everyone here wants to build Bitcoin, … Read more

Homeland Security cuts off Dwolla bitcoin transfers

The U.S. Department of Homeland Security confirmed it has initiated legal action that prompted the Dwolla payment service to stop processing bitcoin transactions.

Nicole Navas, a representative for U.S. Immigration and Customs Enforcement, confirmed the legal action to CNET this afternoon.

Dwolla, a Des Moines, Iowa-based startup, which raised $16.5 million in funding two weeks ago, notified users about the move earlier Tuesday. It blamed the decision on "recent court orders" limiting its ability to send money through Mt. Gox, the largest bitcoin exchange.

"In order not to compromise this ongoing investigation being conducted … Read more

Bitcoin exchange partnership dissolves with lawsuit

A Bitcoin exchange partnership designed to smooth the trading process and show the security of the virtual currency has apparently collapsed with a lawsuit.

After struggling to crack the U.S. market, Mt. Gox, the world's largest Bitcoin exchange, announced in February that it had reached an arrangement with CoinLab in which the Seattle-based startup would manage the Bitcoin exchange's operations in the U.S. and Canada. Along with the support of Silicon Valley Bank and $500,000 in VC funding, it was hoped that the arrangement would help increase customer confidence in the decentralized digital currency.

However, … Read more

Here's why Bitcoin is the future of money

The interesting thing about Bitcoin isn't what it is today. What's interesting is that this experiment is turning into a serious proving ground for the idea of "crypto-currency," digitally created currency protected by powerful cryptography.

Crypto-currency is traceable, more portable than paper money, and harder to steal. If the Bitcoin experiment proves successful, how soon will a government or other regime develop, back, and distribute crypto-currency as a true alternative currency?

My money, paper or virtual, says that day is coming.

A particularly evolved regime could officially back a crypto-currency, issue some basic standards and regulations … Read more

The 404 1,254: Where can you spare a Bitcoin? (podcast)

Leaked from today's 404 episode:

- Check out the new Web site for Jill Schlesinger, CBS News senior business analyst!

- Bitcoin bubble burst? Currency suffers dramatic correction.

- Bitcoin drops another 35 percent as exchange reopens.

- Apple earnings could bring profit setback, despite record sales.… Read more

Bitcoin exchange BitFloor halts operations, shuts down

The recent Bitcoin rollercoaster ride has come to an end for one exchange.

Bitcoin exchange BitFloor announced Wednesday it is closing its trading operations and plans to return its remaining funds to its users.

The New York-based exchange, which specialized in trades of the digital peer-to-peer currency, announced the closure with a note on its home page penned by its founder, Roman Shtylman:

I am sorry to announce that due to circumstances outside of our control BitFloor must cease all trading operations indefinitely. Unfortunately, our US bank account is scheduled to be closed and we can no longer provide the … Read more