Bitcoin draws attention of California regulators

Even the state of California can't quite figure out what the bitcoin Internet currency phenomenon is all about -- or whether it's legal in California. The state Department of Financial Institutions sent a letter to the Washington (DC)-based BitCoin Foundation that warns it "to cease and desist from conducting the business of money transmission in this state." But Alana Golden, spokeswoman for the department, said that the May 30 letter is merely "a routine warning letter. ... There is no enforcement order." Even though the letter to the BitCoin Foundation outlines severe jail and financial penalties, it was merely intended to get the BitCoin Foundation to communicate with California officials about what bitcoin is -- and whether it's legal in California.