New York State to ban Bitcoin over 2nd amendment
New York, NY — New York State is considering banning Bitcoin over the second amendment and is considering legislation to require that all digital currencies used to transact with it be tracked and registered, sources in New York state tell TechCrunch.
The state is considering a bill that would require all digital wallets to have a digital “signature” for each transaction, which would be required for all Bitcoin transactions to be tracked, and that transactions would be verified by the New York Department of Financial Services, the sources say.
The legislation is expected to be introduced in the New Year.
“There are people who use Bitcoin to commit crimes,” a source in the state says.
“I have heard people say they are using Bitcoin to buy drugs, but I have never heard anyone say they were using it to buy marijuana.”
The law would require any Bitcoin transactions, whether made by a seller or buyer, to be verified in New England.
A New York City resident told TechCrunch that he used Bitcoin to purchase $50 worth of marijuana online and had no trouble getting it back.
In New York’s state legislature, a bill to create a task force to investigate the use of Bitcoin and other digital currencies passed last month.
A committee of lawmakers will meet next week to draft the bill.
New York’s law would be the first to ban or regulate Bitcoin as a payment method in New Zealand, a nation with a strong regulatory regime that has a strong record of protecting consumers, according to Bloomberg.
The digital currency has been around for more than a year, but its use in illegal activities has increased rapidly in recent years.
Some of the most notable cases include the Silk Road marketplace that operated from China and was later shut down, as well as a drug ring operating in the U.S. that was allegedly used to purchase heroin.
New Zealand has been criticized by other countries, including the European Union, for its limited regulation of the currency.
In December, the European Parliament’s anti-money laundering committee warned that the currency is used by criminals and could be used for terrorism.
In a statement to TechCrunch, the New Zealand Financial Services Authority said: “The Government has already introduced a new digital currency regulation in October, which will be effective from 1 January 2019.
We are aware of this legislation and will take a proactive approach to ensuring it is properly enforced.”