- Ben Armstrong points fingers at FTX CEO for working under the hood for a BitLicense.
- ‘Federal BitLicense will make decentralized and peer-to-peer transactions illegal’, says Armstrong.
- A crypto enthusiast stated that Bankman-Fried was going against everything that Satoshi founded the principles of decentralization for.
On October 18, Ben Armstrong, a crypto Youtuber and creator of BitBoyCrypto.com, took to Twitter to say that Sam Bankman-Fried (SBF), the CEO of FTX, was working behind the scenes to create a federal BitLicense in the United States.
As per the Capital Fund Law Group website blog, the BitLicense is a business license for virtual currency activities. This license issued by the New York State Department of Financial Services binds companies in the virtual currency with its regulations designed for businesses operating within the virtual currency space.
Moreover, in the tweet, Armstrong mentioned that if the federal license was created, it would make decentralized and peer-to-peer (P2P) transactions illegal.
This statement evoked the interest of many crypto enthusiasts and others within the virtual currency space.
One user who was disappointed with Bankman-Fried’s move commented that the FTX CEO was going against all the principles that Satoshi created the whole decentralization concept for. Moreover, he states in his reply to Armstrong’s tweet:
Agreed! He is going against everything that Satoshi founded the principles of decentralization for. I’ve transferred everything off of FTX. We pay enough in taxes! The centralized financial system already has ultimate power over our fiat currency already.
Meanwhile, another user who saw the cons of decentralization stated in a tweet that the reality of the matter of peer-to-peer crypto transactions is they are absolutely littered with fraud.
Another user stated that crypto could not move forward without regulation, and when the regulations are implemented, decentralization dies. However, Bankman-Fried is yet to make a statement on whether he is working behind the scenes on creating a BitLicense. Nonetheless, in early June, Bankman-Fried appeared on CNBC TV and explained that federal regulation was good for cryptocurrency.
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