Bitcoin Forum

I did a quick research but couldnt find any information about the exchange seeking pro actively compliance with it's jurisdiction (UK). After all the recent shut downs of unauthorized exchanges around the globe I start to worry about it being the next one on the list, likely so because it already ranks #2 in trade volume.

These are some facts I came across:




https://www.bitstamp.net/kyc-policy/


The bank they use for SEPA deposits (and withdrawals?) as well as international depoits (withdrawals?):

Unicredit Bank is headquartered in Roma Italy.

Also:
https://www.bitstamp.net/aml-policy/
https://bitcointalk.org/index.php?topic=49862.20

-edit-
http://www.cityam.com/article/bitcoin-exchanges-ask-uk-regulator-approval
http://www.reddit.com/r/Bitcoin/comments/1klvo9/why_will_bitamp_fall_sooner_or_later/

As far as I know there is no ruling from UK authorities yet as how to treat and thereby regulate Bitcoin. According to the last source cited above, Bitstamp would probably be treated as a Bureau de Change, rather then a Money Service Business or Transmitter. As long as the FSA does not license Bitstamp however it could be shut down any moment by authorities or banks. It seems Bitstamp has only one bank to rely on and that in itself is concerning for the reliance of this exchange to keep working smoothly. I hope they diversify and would love to see some evidence of regulatory compliance/approval.

Is there anything I missed? What do you guys think?

Why to worry?

There are other good wallets..

Because funds may get locked up in there.
Dont want that.

For sure! I hate this type of situations!

Holders of big amounts are most affected..

I'm very impressed by the Bitstamp operation...
Their web site is well-designed and rock solid.

Bitstamp has about $500,000 in IOUs on Ripple...
So they are > 90% of the business on Ripple network.

These guys are on the bleeding edge of the Bitcoin ecosystem...
Are taking volume away from Gox...
Probably have all kinds of contingency plans to keep the cash flowing.

Thats the point that worries me.

These guys are scammers. Idiotic kids with css skills learning entrepreneurship on your teeth.

Good luck.

They were great. But now they begin to do business with US customers. They are without MSB license and are even not trying to comply with FinCEN. This can end much worse than gox.

Given that BitStamp's matching engine is a bit crappy, I have yet to see a scam accusation against them that is substantiated by evidence.

And I believe that you and Hazek know each other in person. So if you call BitStamp a scam please provide evidence. Otherwise it's just a quarrel amongst two businessmen.

Err... what? Even if I would knew Hazek, how does that change the maffs?!

Bitstamp is aware of the problem and in talks with other banks. I expect new partnerships announced, possibly soon.

I did a wire out from Bitstamp and received my funds in my account within 3 business days.

I sent Bitstamp a wire and to my surprise it arrive and was processed the NEXT BUSINESS DAY. WTF? Things aren't suppose to run so smoothly with Bitcoin exchanges.

Keep up the good work guys.

Bitstamp is not a UK company and to my knowledge they do not fall within the jurisdiction of UK authorities (FCA and/or HMRC). Yes, Bitstamp Ltd is registered with Companies House but likely this is for tax purposes (by offshoring their profits to a holding company they are not liable for corporation tax in their resident state; Slovenia). The actual company running Bitstamp - as registered in Slovenia - is most probably not the same and has a Slovenian registered address.

The upshot of this means they only have to comply with the Slovenian authorities requirements on AML/KYC - which they most likely do.  

good thing companies that employ offshoring techniques to avoid paying taxes in their home country are well respected by the authorities and will enjoy special protection should LE and/or the taxman decide to shut them down.

Does anybody know anything about Slovenian money transmitter licenses or similar?
What would Bitstamp have to do in order to comply with it?

Hm. Well, I don't know much about this, is there a decent risk they might be shutting down and locking up? I have funds in there and want to cash out a few BTC soon, but it'd suck if I'd lose it due to it shutting down.

Relevant:

http://www.cityam.com/article/bitcoin-exchanges-ask-uk-regulator-approval

http://www.reddit.com/r/Bitcoin/comments/1klvo9/why_will_bitamp_fall_sooner_or_later/

And now people are asking the right questions... the Bitcoin exchange market is incredibly weak.

I always avoided them simply because they were listed as being in Slovenia.

Coinbase price is very close to Bitstamp and is headquartered in the US, so there is much more in the way of recourse if something goes wrong.

As it turns out to be, Slovenia is one of the most BTC friendly places, at the moment.

I'm not worried about BTC friendliness as much as being able to actually get my money back if they go belly up.

I'm really happy for anyone who has successfully disburse a loan via Bitstamp but I would have to be very desperate to trade with such an exchange.

IMHO it's just a matter of time until problems will occur. But unlike Mt. Gox you just do not know who is behind it. My advice: Just hoarding your Bitcoins until the situation has calmed down. And if you sell over Bitstamp, then quickly. But perhaps the platform will developed by time. Such as Poland, Slovenia is one of the most progressive countries in Eastern Europe. I do think that there can raise a functioning business. But of course ultimately depends on the people who run the business.

I would always prefer an exchange, which is located in my home country. This is certainly not a bad idea as long as you do not live in Somalia.

On the contrary, I met several of the Bitstamp guys, including CEO Nejc Kodric, at the San Jose conference. I'm not at all worried about them running off with my money. The only concern I would have is the same as I have with any bitcoin exchange; namely, that some ignorant government somewhere freezes the funds.

Its OhShei8e spreading lies over and over again.  The Bitstamp guys are pretty well known, and are much more visible than Gox's wonderfully transparent CEO karpeles.

Stop to accuse others of lying! I do not know anyone from Bitstamp. That is a fact. But it's interesting to hear other opinions. If people have meet people of Bitstamp I think it's great. I've never been to such a conference. :-/

Karpeles is one of the good guys. I've only seen him on YouTube, but I trust him immediately. He's a nerd.

Bitstamp was at Bitcoin 2013 and other conferences.  When was the last time you saw anyone from Mt.Gox at a conference?  The answer is never. 

Oh ya regarding Karpeles, you mean the guy who sits on an exercise ball during his interview and uses Clark Moody to look up the price of Bitcoin on his own exchange? Brilliant.

http://www.reuters.com/video/2013/04/23/an-exclusive-peek-into-the-worlds-bigges?videoId=242413486

Yes, and he stutters a bit. Hilarious.  :D

As well, there is no video of Satoshi Nakamoto.  ;D

If I ever do a Bitcoin interview I've got to think of a way to out-do the exercise ball.  Maybe do the interview sat on a potty, or one of those cars shriners drive in parades

http://thumbs.dreamstime.com/z/shriners-mini-car-21095695.jpg

I see nothing wrong with Mark using Clark Moody to lookup the price of bitcoin on Gox.

It's appalling.  The CEO of an exchange doesn't use his own exchange's website to look up the price of Bitcoin. Just look at the current 20% spread between Gox and Bitstamp as an indicator of the trust that Gox users have for him.  

What "unauthorized" exchanges are being shutdown?

Yes I am always worried about Bitstamp getting shut down too and my funds in there frozen. I use it to trade Ripple XRP, so I need to keep at least a couple thousand USD in there and would not want to lose it. 

I could convert it all to BTC every day and move it out of there and then back, but that isn't practical much of the time, especially when a trade opportunity pops up that you need to take advantage of immediately.

But we know nothing about the Slovenia gov't and they could just want to get in good with the USA gov't and do what they are told.  The USA gov't hates bitcoin and that is my main worry with Bitstamp.

Slovenia is also likely the next place that goes Cyprus. i wouldn't want to keep much money at a Slovenian bank.

As already said in this forum, BitStamp's bank is not Slovenian although it operates in Slovenia.

http://en.wikipedia.org/wiki/UniCredit

UniCredit is a large Italian bank partly owned by German investors. It is less likely to fail than a  local Slovenian bank.

Can anyone recommend a (somewhat) safe alternative to bitstamp and gox?  
I want to spread my 'broke/shutdown/scammer' risks somewhat.  Slippage isn't an issue as I am only krill to the whales.

Bitstamp was down several times today, soon it will experience all the issues that mtgox had, just 6 months later

it does not matter ... if the ECB forces depositors to take a write down, you and anyone else with funds in a bank operating in slovenia will take a hit...