By warning the Bitcoin Foundation to cease and desist from allegedly acting as an unlicensed money transmitter, California may be either targeting the wrong group or trying to ensnare others.

The Bitcoin Foundation, which promotes the use of the digital currency but does not function as a bank or exchange, received a cease-and-desist letter from the California Department of Financial Institutions.  The letter, dated May 30, accuses the foundation of defying the Money Transmission Act, but does not elaborate, and the agency would not disclose further details.

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