Quote from: chris45215 on August 05, 2014, 01:59:50 AM

Quote from: lesnod11 on August 05, 2014, 01:14:45 AM

No, this law does not stop a person from doing arbitrage, much less customers in NY from working with sites outside of NY. The law is an attempt to license dealers. Basically Dealers would undergo background checks and would have to show that business would be conducted "honestly, fairly, equitably, carefully, and efficiently." Strait out of the liberal book of idiots yelling "more government please"! However; no place does it say a person that invest money with someone/business in another state, country, or planet that is unlicensed would make the later someone/business illegal.

Lesnod11, I don't know where you are getting your information but I can quote the proposed regulations. Bitcoin is my weekend/evening job; it's my business to know these things at a professional level. I don't intend to sound rude or condescending, but this literally is my 2nd job.
An entity can still do arbitrage on their own behalf - using their own money - but they follow a different set of rules when using someone else's money. Part 200.2(n) says that a "Virtual Currency Business Activity means the conduct of any one of the following types of activities involving New York or a New York Resident: ... [part 2] securing, storing, holding, or maintaining custody or control of Virtual Currency on behalf of others."
Then, 200.3 (a) states "No Person shall, without a license obtained from the superintendent as provided in this Part, engage in any Virtual Currency Business Activity."

So, any entity/person holding or controlling Bitcoin for a New York resident MUST have a license. Out of the hundreds of customers Btc-Arbs had, they almost certainly have at least a few New York residents. Btc-Arbs would also fall under the definition of the regulation in other sections as well. The full text is at http://www.dfs.ny.gov/about/press2014/pr1407171-vc.pdf

In order to avoid just that quoted section, btc-arbs would need to fully refund all New York residents before the regulation goes into effect. And even then, any of those residents could say that the claimed profits are still owed to them.

LOL - and of those of us who are not actively involved in btc mining, trading, arbitrage and otherwise don't have it as a second job? Don't get me wrong, but it's very condescending, not to mention naive to think the rest of us are not on the same page and work just as hard to both better the community and make money from it. Once again, nowhere does it say a person can't invest in another persons business that is located elsewhere, even what you quote doesn't state that....... The point to this was to somehow implement laws to stop things like gox, however; if a person has money or traded on gox and they lived in NY the state can do nothing to stop them.