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Regulations

EFF Accelerates the Privacy Panic Cycle for EdTech

Earlier this month, the Electronic Frontier Foundation (EFF) launched a “Spying on Students” campaign to convince parents that school-supplied electronic devices and software present significant privacy risks for their children. This campaign highlights a phenomenon known as the privacy panic cycle, where advocacy groups make increasingly alarmist claims about the privacy implications of a new technology, until these fears spread through the news media to policymakers and the public, causing a panic before cooler heads prevail, and people eventually come to understand and appreciate innovative new products and services.

When it comes to privacy, EFF has a history of such histrionics. The organization has accused desktop printers of violating human rights, spread misinformation about the effectiveness of CCTV cameras, escalated confrontations around the purported abuse of RFID, cried foul over online behavioral advertising, and much more. These claims, even if overblown and ultimately disproved by experience, generate headlines and allow EFF to spread fear, ploughing the ground for harmful regulation or even technology bans.

EFF’s newly launched “Spying on Students” campaign is yet another example of this tendency to put fear ahead of fact. EFF

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“BitLicenses” Explained

In the past few years, virtual currencies, particularly Bitcoin, have jumped from an online experiment to a multi-billion dollar global phenomenon. Now, governments are starting to recognize these currencies, hoping to both legitimize and secure them with proposed regulations. On July 17, the New York State Department of Financial Services (NYSDFS) released a proposed regulatory framework for virtual currency that would require businesses that hold, transmit or convert virtual currencies to everyday currencies to apply for “BitLicenses.” This is one of the first proposed regulations on virtual currencies in the United States since the IRS proclaimed Bitcoin to be property subject to capital gains tax last March. While NYSDFS is still only seeking comments on these rules and nothing is final, I will attempt to break down the proposal as is and provide some initial thoughts on the implications for virtual currencies.

What is the purpose of the regulations?

NYSDFS announced these regulations as a result of public hearings it conducted in January 2014. NYSDFS hopes to use these rules to protect consumers, prevent money laundering, and improve cyber security for businesses that use virtual currencies. These regulations represent

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