Bitcoin Forum

Friends i have this question in morning while i was buying bitcoin from local exchange.

The question is how a exchange site is made? Is there any government policy that one must implement to start his own in his country?

basically let me know the ABCD of how a Crypto Exchange site can be set up.

Regards,
Mike

There is one in our country it deals with bitcoin to local currency exchange they are compliant to our government policy because they work on various banks and remittance here in our country,I think this is the first you should do to research what are paper works to set up one in your country ...

It's a damn good question and I wonder this myself.  It seems like Coinbase and Circle are well-regulated by the US.  In other countries it seems the law hasn't caught up yet, and a lot of the exchanges seem to be run by people who have no business running exchanges.  I suspect organized crime and/or clueless tech nerds.

I'm slightly appalled at how slow it's been for us to get some respectable exchanges. The US seems to be the only place with properly rock solid ones. If I were to be looking into setting up an exchange, the first thing I'd do is get a totally dependable banking relationship in the bag. Nothing happens without that.

you have to check this with your own country laws and rules, both about crypto currencies (bitcoin, altcoin) and also about money.

also you have to follow rules about money laundering and if you are a US based business you may have to ask your users to provide you their personal information, and give them to authorities because privacy is dead there.

also you should check out laws about Taxes which is super important unless you want IRS filing a lawsuit against you :)

are all trading/exchanging sites(yobit , novaexchange, c-cex.com,c-cex.io..etc) following this?
Is there any chance that someone might be running it wthout fulfilling any legal procedures, You know its kinda internet thing :D

Some of the exchanges outside of the USA with all it's KYC/AML regulations will be in a better position to answer this, but I doubt that they will... basically because it will put them in the spotlight and if

other people knows how, they will become the competition. I would like to see some sort of decentralized exchange, but I guess that will be even more difficult.. because you have to deal with the fiat

side of things. I have to agree with one of the previous posters... this is a good question, and I would like to see the answer to this too.  ::)

There is a lot of other talk about it. The rules and regulations you should be following are the ones laid down by your online financial rules like PayPal. Many countries like Japan only allow to sell buy exchange money online if the member is verified by their national identities and in case the exchange should be able to submit their documents if needed. This kills the anonymity. Once you get over this, everything else is just marketing and sales

Hmm I prefer the term the law tries to catch up to people exploiting it rather than catching up with tech

You can make an offshore website but your  users won't be able to withdraw their money as us dollars, only bitcoin.

When the real money involves (like usd) so does paperwork.

And without that option your customers may think you as a shady website, so you won't get much customers

Well it surely differs base on the country that the exchange will be from. Government rules should be followed and on top of that permits would be needed for asking users to identify who they are (identity verification process) since it's a serious matter, then a partnership with at least a single bank in which it will also act as a way for indirect deals between users with other banks and lastly, large reserves of crypto funds. Before I forgot, there are some other things like office inspector of the exchange, security evaluation and stuff like that as well.

the point is in their goverment,if country where that exchange build legalized bitcoin,i think that exchange can given policy,its will make concumer be safed with any regulation of marketplace. just my opinion ;D