Last March, a single Bitcoin entrepreneur was reported to have led Bitlicense to court because of the law that stifled the digital currency business and limited regulations established by the New York Division of Financial Services (NYDFS). Now the French national, Theo Chino is taking the case to the Supreme Court with the first hearing beginning on May 4.
New York Bitlicense has always been a contentious issue for bitcoiners since NYDFS regulator Ben Lawsky introduced legislation. Since then, the masses of businesses focused on Bitcoin have left New York to operate elsewhere and only a few companies have been approved under the license.
Following these events, Theo Chino, a businessman who operated a bitcoin merchant solution service said his business was hurt by the Bitlicense, and he has been concentrating all of his energy towards fighting the regulatory guidelines.
Chino believes that the reasons behind Bitlicense are confusing, inconsistent but still led to the beginning of legislative action. The so-called “Article 78” suit that was filed in New York’s highest court states.
“This court should allow for limited discovery on the economic nature of bitcoin and whether the regulation was issued in an arbitrary and capricious fashion.”
Chino has also complained in the past about the Bitcoin Foundation not doing enough to assist fighting this legal battle. During the recent bitcoin conference in Miami (TNABC) Chino interrupted the former Bitcoin Foundation Director Bruce Fenton’s keynote speech and asked him why the Foundation wasn’t helping him.Fenton responded that the Foundation could only do much with volunteer efforts and the organization lobbied the NYDFS with groups such as the Electronic Frontier Foundation.
With the hearing coming soon, the Bitcoin Foundation has pledged since April 10 to solicit donations to help the trial move forward. In a recent blog post, the organization states “the Bitlicense can still be stopped if we use this opportunity,” referring to Chino’s Supreme Court case.
The Bitcoin Foundation says they have created a BTC portfolio to accept donations for Chinese legal fees. “The Foundation will disburse amounts from this wallet on the presentation of invoices for legal fees incurred in this matter and signed off by Chino,” the Bitcoin Foundation explains. The organization hopes to raise roughly $100-200 thousand dollars in bitcoins to help with all of the legal costs.
“We need your BTCs now more than ever, in order to stop the Bitlicense regulation in its tracks, before it sets a global precedent.”
With the May 4 approaching fast the Foundation has raised only a small portion of funds until the donation portfolio has raised just over $ 800. The hearing will take place at the Justice Lucy Billings building in New York with Chino’s hopes of stopping the Bitlicense from causing further industry damage.
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