Bitcoin has just found itself a new enemy in the shape of the California Department of Financial Institutions, which has just sent a cease-and-desist letter to the nonprofit Bitcoin Foundation, an organization that’s devoted to promoting best practices for the cryptocurrency.

The California Department of Financial Institutions, which regulates banks and credit unions in the state, has apparently ordered the Bitcoin Foundation to cease all operations within California, accusing it of “engaging in the business of money transmission without a license or proper authorization.”

Should the Bitcoin Foundation be found guilty of violating California’s Financial Code, it could face fines of up to $2,500 a day whilst it continues trading, not to mention possible criminal charges, reports Forbes’ contributor Jon Matonis. According to the report, Federal law prohibits organizations from engaging in money transmission if they are not registered with the Treasury Department, or if they do not possess a state license to do so.

Matonis, who sits on the Bitcoin Foundation’s board, did not indicate how the organization would respond to the charges against it, although the letter states that it has twenty days to comply. However, from Matonis’ tone, we can presume that the Foundation will attempt to fight the accusations:

“One activity that the foundation does not engage in is the owning, controlling, or conducting of money transmission business. Furthermore, that activity would also be against the original charter of the foundation. As general counsel for the Bitcoin Foundation, Patrick Murck has lead responsibility for corresponding with the California Department of Financial Institutions.”

“At this stage, it’s difficult to tell whether or not it was a general blanket action and if other bitcoin-related entities received cease and desist letters from California. If Bitcoin Foundation was not the only recipient, then expect other companies to come forward in the days and weeks ahead.”

The Bitcoin Foundation’s warning is yet another sign of increasing pressure on the cryptocurrency. Just last month, the world’s largest Bitcoin exchange Mt. Gox had its US-based funds seized by the IRS. The Tokyo-based exchange was targeted by a seizure order from the US District Court in Maryland over its failure to register as a money-transmitting business. It had been using digital payment processor Dwolla to transfer money to US customers, and has since ordered a two-week freeze on any US dollar withdrawals.