I've since discovered a few things since my last post only a couple days ago - first, the number of trading exchanges is numerous and Coins-e only traded a few currencies in comparison to others - and traded at a much lower volume than other places. It's a lot an information game at this point I believe - as at one exchange I saw Dogecoin being bought and sold for a `rate' of 63 and bought and sold on Coins-e for 72. Obviously, one could make money simply having accounts in both websites and trading back and forth. Quite curious.
Even more curious was what occurred today AFTER a ruling that could certainly be seen as a blow to the diversity of the handling of Bitcoin and other currencies. Anyway, before the ruling details..... I went to Satoshibet - a place I've had (still have probably) banners for as a place for secure private internet gambling. Indeed over 400 were there as part of my links. .... Anyway.... I've pulled some of their banners simply on the statement that SLAPS you in the face IF you live in the USA when you go to the website as of TODAY - as you can see if you are from the USA - Satoshibet now restricts your usage of the website (good luck at getting your bitcoins) - certainly a buyer beware situation. As is virtual currencies evidently.
Now - onto the ruling explained here by:
FinCEN Stifles Bitcoin Adoption; Reinforces Legacy Banking Systems
“FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.”
- FinCEN.gov
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The new guidances (FIN201-R011 and R2012-FIN-2014) advise that under US law, virtual currency exchanges and payment processors may be considered as money transmitters under the Bank Secrecy Act (BSA).
Applying for a money transmitter license (MTL) is an expensive and lengthy process. According toGrimes Law PLLC, to conduct business on a national level, the application fees alone will come to just under $7 million USD, creating a high barrier to entry and limited competition. Businesses such as Bitpay, which has applied for an MTL in Georgia, will possibly suffer extraneous fees. This in turn is creating great concern and cause for debate in the Bitcoin community.
The article offers a range of opinions about the ruling making the hurdle to do exchanges with transferring Bitcoin and others coins - it seems the buy-in price to do so is at least 7 million as you see above. Something that would probably mean many of the smaller exchanges and such will be out of business if this is enforced IMO. That said, as one Reddit user does in the article above - AFTER the shake-out, which happens in any business model - the strong IMO will indeed survive and this will be a blip perhaps. That said, the many who will lose value when various exchanges can't put up millions will certainly create more badwill and avoidance.
The article begins by calling the ruling that applies an outlier to the world view on things like this.
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You will notice the continuing change in The BS's format and look I hope. Those looking for THE BARFSTEW - The direct link is in the post below.
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Next Up
switching exchanges
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