I think there is the possibility that this could be the end of the road for cryptocurrencies in the USA, from a practical standpoint.
Why? It was already the case that Bitcoin exchanges had to implement Know Your Customer (KYC) for USA.. doesn't sound to me like this is saying anything new in that regard.
These new rulings will affect many merchants also.
I suspect it will take a few days before the realizations sinks in as to what has happened.
Merchants are exempt according to Lawsky. A merchant isn't the same as a payment processor. Why can't the merchants handle the bitcoin and immediately send them to coinbase or bitpay for them to instantly convert it?
lmao! oh well hell, if he said that! Don't get it confused, just because Lawsky say's something today doesn't mean it can't be squashed the very next week with additional BS rules and regulations.
What's this going to do to BTC in the states? My opinion is fee's for places like Coinbase, etc. will increase dramatically, eliminating any benefit BTC might have been useful for in the past. Most of the exchanges will likely simply refuse to work with US-based customers and unless customers are willing to break the 'law' by using non-authorized outlets we will see bitcoin ultimately die the slow death or eventually get taken over by the central bankers and hedge fund masters to be used as the underlying replacement to the USD for international trade. Specifically for oil I'm thinking.
Bitcoin might not be the 'Peoples Currency' for much longer.