If you haven't heard of a bit license yet, stay tuned because you will.
It's about the new virtual currency, bitcoins. New York, it seems, has become the first state to propose the new fee. That's the kind term for new tax once it becomes law and most likely will follow in other states and jurisdictions all the way to the county and city levels. Federal, state, county and city, remember, each has its on taxing octopus.
The justifications for invoking the new rules never vary--to protect the public and prevent crime. Those two have replaced motherhood, apple pie and what use to be semi-revered God, the church and the American flag.
The proposed new rules applied only so far to those involved in trading and storing virtual currencies. Despite what naysayers will say, bitcoin is growing in acceptance as Michael Dell of Dell computer just announced they will accept the virtual currency. And there are many others like Dish Network, the cable provider. Around the globe there are now nearly 65,000 firms that accept the coin.
What remains to be solved, as some are already pointing out, is whether, contrary to what the New York State Department of Financial Services is proposing, separate regulations are warranted. Some feel the new currency should just be folded into the already existing financial system.
Oscar Wilde noted that a cynic is a person who know the price of everything and the value of nothing. Well, we don't know what the price of any licensing fee will be--bureaucrats seldom miss a juicy new taxing opportunity--but our gut feeling is whatever it is will supersede the value those subject to paying will receive.
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t. man hatter
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