In the past few days, the states of Texas & North Carolina have issued a cease & desist order aimed at BitConnect & it's affiliates. BitConnect immediately complied by taking away the loaning ability of members of those states. They can still withdraw, but new loans or reinvesting is NOT allowed.
Originally, I felt like this was a sign that BitConnect is doing the right thing by doing this, but as I have slept on it for several nights this just can't be right.
- BitConnect is not a US company
- BitConnect is not trading in US currency whatsoever
- These states have no jurisdiction over BitConnect
What can the state of Texas or NC do to BitConnect? NOTHING
What can they do it's it's affiliates and promoters? Possibly a fine or jail time.
BitConnect has no reason to comply with these orders or any other orders in any country. This was the main reason I liked bitcoin, crypto and BitConnect because of the anonymity of the owners and the governments cannot control any of them.
Once bitcoin or any cryptocurrency on the blockchain starts to bend for the governments requests, I feel that it is a path to being doomed.
Can these states issue a C & D order on all cryptocurrencies? How about the blockchain technology itself? Then why BitConnect?
I would completely understand if there were "real" cases in which people lost money. NO ONE has ever lost any funds on BitConnect. People have paid off mortgages, college debt, cars and plenty have actually found financial freedom. The governments need to STOP hating and mind their business. The US dollar is not being used, just BitCoin which many have earned for zero dollars through mining, staking, loaning etc.
In closing, the bottom line is that BitConnect needs to simply ignore these C&D orders. I understand why they complied. Possibly to give the appearance of legitimacy. The problem is that this may create a domino effect and many other states may follow. More to come on this topic in the coming days.
Do you think BitConnect should comply with foreign governments? Especially on the state level?