BitLicense is unworkable, unconstitutional and easily avoidable. Lasky has just consigned New York to the top of the entrepreneur’s “toxic” list.

Many people are applauding the BitLicence, which by all reports is less onerous than its original first draft. We suspected and predicted that this would happen; an impossible to obey set of rules would be drafted and then pared back after Pavlovian objections from people who cared enough to complain.

Now the actual and desired “foot in the door” set of rules is about to be released, that are not laws, only rules, which do what the “Regulators” originally intended and wanted; a first step to full regulation of all software:

Know Your Customer”

A completely onerous and absurd requirement known as “KYC” is to be made that forces anyone buying Bitcoin to present government ID before they can buy it. I have explained at length why this is complete nonsense in many other essays, and I encourage you to read them for yourself.

What I will do here and now, is present several scenarios which demonstrate why the BitLicense can never succeed, and certainly will be ineffective to catch the imaginary “bad guys” which are the cause of this drivel.

This is what you can do to 100% avoid the BitLicense and its expense.

1/ Use your browser to buy out of NY jurisdiction

Already in Australia, people are avoiding the 10% sales tax imposed on all Bitcoin purchases by using the internet to buy Bitcoin from CoinBase in America. This is how easy it is to avoid Bitcoin regulation. All you have to do is use a browser and your credit card.

This can work because no one knows the IP address of any Bitcoin wallet. Even if CoinBase were told not to serve Australians, someone else somewhere else would sell Bitcoin to Aussies and the Bitcoin would arrive in their wallet, wherever they are.

BitLicense applies only inside the borders of the State of New York, and nowhere else on Earth, or even America. This is called “Jurisdiction, which stops at the New York border in every direction from Albany.

2/ Drive to New Jersey

You can drive to New Jersey from New York, or take the subway. This will save you having to show your ID, which even if you don’t object to doing so, makes your Buying of Bitcoin more expensive if you do it in New York, as the work to store your documents for seven years has to be paid for by the company selling you Bitcoin from New York, which is passed on to you.

3/ Use a private broker

You can buy Bitcoin from private brokers either by phone or email. There are many people doing this, even in sums up to and over a million dollars. No questions asked, safe reliable, risk free and fast. Its being done every day; the Bitcoin Exchanges are only a part of the story when it comes to how Bitcoin is moving globally.

4/ Buy it in the street

Do you really think that people will not buy and sell Bitcoin in the streets of New York? Are you really that naïve? It appears that some people are.

5/ Use a peer to peer market like Brawker

Using services like Brawker, which puts buyers and sellers together its easy to buy Bitcoin from people all over the world. Its also completely reliable, risk free and absolutely safe to use, because Brawker uses Multisig Transactions to make sure every party to a sale behaves correctly. You can bet that many services like this will begin to emerge making it simple to buy Bitcoin cheaply without having to pay the Lasky Tax.


The fact of the matter is that an internet native money in a networked world cannot be bottled up or controlled. You cannot stop people from trading it, selling it or doing anything with it. Multiply the five scenarios I sketched out above by ten thousand; that is the number of ways you will be able to buy Bitcoin online, and no one will be cheated because Multisig will be the default way that it is done.

Normally I would say that this BitLicense is a shame. That was before Bitcoin. Thanks to Bitcoin I do not have to say or feel despondent about this. I know that there is nothing that the Lasky’s of this world and his utterly repellent, compliant running dog Socialist cheerleaders can do to stop Bitcoin from moving freely.

Like the Australians, there will be the similar tiny inconvenience of not having to visit an Australian web site to get their Bitcoin. Big deal. Everyone is going to ignore New York because a loud market signal is being sent, “You lose money if you do Bitcoin in New York”. These market signals are transmitted instatnly over the web and cannot be stopped.

This is only the first of many battles that Bitcoin and its users are going to win. I say this with complete confidence; mark my words, BitLicense will be repealed when it is found to be absolutely unworkable garbage. Before that, every single Bitcoin business will have fled New York, even the USA, for free jurisdictions, just as CoinJar have fled Australia.

The era of regulations by the State is over. Its clear the drafters of this are certifiably insane, desperate, and flailing about for an answer to the Bitcoin threat and there is no level that they will not stoop to; even to the level of trying regulate the execution of math, which is exactly what BitLicense is.

History will see these desperate acts as the last gasp of the Statists. Absurd, stupid, disgusting and utterly anti-human.