Viewing 1 post (of 1 total)
  • Author
  • #15720

    <br> That’s a big risk for exchanges to take and it grows as the popularity of bitcoin grows. James: Yes and no. All existing bitcoin exchanges that are not doing AML on all accounts (even bitcoin only ones) are at risk. And that’s a risk the exchanges are taking. Vitalik: The exchanges seem to be dealing fine with the AML stuff though, is your situation different? Also, for bitcoin exchanges who are dealing with bank deposits the depositors are somewhat known – as in, they have to transfer in from and out to a bank account, and those are linked to a persons identity. Fed interest rate hikes, likely because bitcoin is controlled by the rules built in the blockchain protocol, not by any country’s central bank policy,” Wade said. Ten years later, and against all odds, this upstart autonomous decentralized software offers an unstoppable and globally accessible hard money alternative to modern central banks. In the simplest sense, it’s digital money that only works through a computer network – and it’s a type of currency with some unique features that you don’t find in fiat currencies like the U.S. First, a network map of all the addresses was made based on the transactions between them.
    Vitalik: You said on IRC that is was anti-money laundering (AML) first, then tax, then the regulations, right? Right now people might be able to get away with just by saying that their business is that they sold bitcoins, but once the amounts become worth while tax agencies everywhere will start asking how people managed to aquire those coins in the first place, and this is partly where the money laundering side of things comes in as well. While regulators debate the pros and cons of bitcoins, this volatile digital currency inspires the question: What makes money, money? If you lose your private key, or it is stolen, you effectively lose control over your bitcoins, a bit like if someone found out your PIN number. After spending some time I’d found what I consider to be a pretty good one. Also, at that time Intersango had just gotten a letter from the FSA stating that they didn’t consider bitcoin as currency. Also, you can’t just withdraw your assets since they’re something that existed solely on GLBSE. Plan B was to shut down GLBSE and start a new company, which from the begining followed all the rules. James: The initial plan was to make GLBSE itself a legal entity that met all the regulatory requirements, with the hope being that it would be something we could ease into.
    Vitalik: you said that you might try to make a legal exchange in the future. Vitalik: Would you have to AML all accounts or just those above a certain threshold? So, for example, another proof of consensus mechanism is called proof of reputation: the more reputable you are, the more votes you have in validating things.” The proof of authority system relies on reputation and trustworthiness; blocks and transactions are verified by pre-approved participants who must reveal their true identities. Vitalik: But isn’t transferring assets just a matter of telling the issuer who has how many? Vitalik: Anyway, what are the difficulties with getting users their money back? Vitalik: What about the tax issues? James: Very simply, the tax man will want their cut of bitcoin activity. Regarding the GLBSE, they believed that what was being done is very much a regulated activity. I, being the operator, would be liable for the lack of AML provisions. This being London, we’ve got some of the best securities solicitors in the world, so another part of that was my location – I couldn’t really find anyone while I was based in China, or even Manchester. Bitcoin fell by 1.22% to $27,043 while Ethereum was slightly above the $1,800 level.
    We were succesful enough that it was certainly worth our while getting a solicitor. This is not just my opinion, this is what the solicitor has told me, and since it’s my neck on the line regarding the GLBSE and all it’s activities I’m much more inclined to listen to the solicitor – otherwise, why bother getting one? Things in the non-bitcoin economy take a hell of a lot longer to get done than in Bitcoin land; people were complaining about why GLBSE wasn’t able to give them their bitcoin back right away (and started freaking out on the forums, in a large part thanks to theymos), really things don’t move that quickly offline. Fast forward to last week, and the FSA and others finally get back to us. The solicitor went and spoke to Sdfefsesdfe Tistory some other people, got a second opinion, and went to the FSA. Went to ISIG. Got some sco<br>

Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.