Defending The BlockchainsteemCreated with Sketch.

in #bitcoin7 years ago (edited)

DefendTheBlockchain was formed to help protect ALL Blockchain developers, companies, users & products from overzealous regulators, entrapment cases, and cases that may affect the blockchain industry as a whole.

Donations

You can support DefendTheBlockchain with crypto donations or by donating directly from our website using Bitcoin or Credit Cards.

Legal Counsel & Services

DefendTheBlockchain was formed as a Trust Fund to be used to retain legal defense and bail bonds for anyone needing legal services deemed to be in the best interest of the blockchain industry.

Defend The Blockchain: A New Crowdfunded Initiative To Protect Blockchain Projects – The Regulation Hypocrisy

In 2014, after bitcoin broke the $1000 mark and other cryptocurrencies started joining the market, the Department of Financial Services issued the “BitLicense Regulatory Framework.” The new “BitLicense” placed regulations on any entity using cryptocurrency residing in New York.

It was one of the earliest cryptocurrency regulations.

Acquiring a “BitLicense” was no cheap or easy task. The license alone cost $5,000. On top of that, there were legal fees, extensive paperwork, and restrictive requirements, some arguing that it would leave customer data vulnerable. Coinsetter claimed to have spent $50,000 in the application process, while Bitstamp believed the figure was closer to $100,000.

Several companies including Bitfinex and Kraken refused to comply and ended up leaving New York. Publications referred to the phenomenon as “The Great Bitcoin Exodus.”

“BitLicense” was architected by Benjamin Lawsky, a New York State regulator and former federal prosecutor. Lawsky earned a notorious reputation on Wall Street for his strict stance on securities regulation and his punishments carried out on offenders. According to The New York Times, “He threatened to pull their licenses, fined them hundreds of millions of dollars and forced dozens of their employees to resign.”

Lawsky would depart barely a year later to form The Lawsky Group, a consultancy firm that helps businesses navigate the maze of crypto regulation and acquire their own “BitLicense.”

The man that made the rules, later charged people to understand the same rules he created and implemented.

The Biggest Threat To Blockchain

Cryptocurrency and blockchain, its underlying technology, are still in their infancy, like the Internet before social media, or like the cloud without any applications. As blockchain enters the public discussion, we can begin to understand the different applications and use cases for the technology.

Unfortunately, as blockchain becomes more popular, a few bad apples are spoiling the scene. From scam companies to misreported news, a handful of companies and individuals are abusing the confusing and patchwork regulations to take advantage of unwitting customers.

The consequence? A stigma attached to blockchain startups.

Regulation alone is not the issue. In fact, regulation in a new industry is to be expected. Sensible regulation is necessary for protecting consumers from predatory practices, and in ensuring businesses do their due diligence.

But as demonstrated in the case of Lawsky, regulators don’t always understand how their actions can suppress or inhibit innovation, especially from innocuous small businesses and startups.

Despite some of the companies with working products (such as Kraken and Bitfinex), regulation can be counterproductive to the purpose of blockchain, which is designed to be decentralized and anonymous. With the new “BitLicense” requirement, customers must present valid identification to engage in exchange services or hold cryptocurrency. Others are receiving cease and desists, experiencing shutdowns or seizures unjustly.

While these fraudulent companies do exist, too many are tainting the name of potential innovations and breakthroughs. Regulators become too paranoid about these “outliers” and then create blanket regulations that do more harm than good.

Defend The Blockchain

There is some hope. “Defend The Blockchain” is a brand new initiative designed to protect legitimate blockchain projects.

Defend The Blockchain is a large crowdfunding campaign where people can donate to businesses unfairly harassed by the government, despite a plausible blockchain vision.

This initiative is not designed to protect every company- only blockchain projects that show compliance and a working product. Ponzi schemes, fraud ICOs, and vague projects will not be covered by the fund.

Through the Defend The Blockchain initiative, the hope is that more sensible regulation can come to pass while protecting the intellectual property of new businesses. The mission is to cultivate a blockchain industry with reputable brands and technology while continuing the dialogue on fair regulation.

Defend The Blockchain is in its early stages. Stay tuned to find out how you can participate in protecting the technology of the people, and the technology for the future.

You can donate to Defend the Blockchain now here: defendtheblockchain.com

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yes, blockchain is very important to our daily lives to make our community transparent and trustless society :)

Bitcoin and bitshares donations sent. Resteemed.

Many thanks!

How to donate Bitshares? I can only find the 4 coins coinbase accepts.
Thanks Stan.

+5%. Stan you should come on Fuzzys hangout to talk about this.

Great idea!

See you tonight on Blue Rock Talk.

Only asks for donation?

  • Who are receiving the donations?
  • How will they use the fund?
  • What have been achieved?

The web site gives all the details. I am managing the trust. So far we have spent $200K to keep one innocent man from being railroaded by the dirty trick of confiscating his resources to deny him the right to a fair trail...

hi您好,我是ONO的创始合伙人崔佳宁,我经Stella介绍与你认识,她跟我介绍过您,是一名很赞的steemit自媒体,并且也是中国人!这很赞,很希望能与你沟通,如果你了解我们,一定会喜欢上我们!
我们是基于EOS链上的DAPP,是一个基于区块链上的,去中心化的社交网络,产品名称是ONO,类似于中文版的steemit,将于4月15日上线。
现阶段正在第一期运营阶段,如果你也愿意,请加我的WeChat,我将与你介绍ONO,你一定会很兴奋!

请您收到了之后联系我:)这个惊喜不容错过。

What a great initiative :)

kaBOOM 100% upvote! Thank you for raising awareness and defending the blockchain.

Curated for #informationwar (by @wakeupnd)
Relevance: because freedom isn't free
Our Purpose

Nice post @stan
I think the government plays some threat to the blockchain also.
Im looking forward to reading nice posts from you
Started following you friend

I'm learning more and more about STEEM and its value, and this post definitely put me in the right direction to continue my research. I have been on Binance for a little while now and continue to 'fill my bags' with a handful of cryptos and it has been interesting to see how BNB has been doing. Prior to the 'crash' a few months ago BNB was close to $20 (I think). Since then it has dropped significantly but has slowly been on the rise. As the token directly related to the exchange, I feel that BNB will certain gain volume and value as the year progresses. -Respect

vital and also an informative post sir.