I thought it cost like $1M for each state to get a money service business license, and that is just in the US. Right? Wrong? You at least pretend to know something about it.
There is a balance of reason, and the cost of an MSB looks a bit more to me like something which is designed by those who already have their foot in the door to stifle competition rather than a legitimate expense required in keeping us safe from those 'evildoers'...or whatever the excuse for monitoring/managing the serfs happens to be at the moment.
if you cant afford to get the licences/insurance (FDIC) then maybe your not the right person to be looking after peoples investments
$50 million entry fee means only a few state-supported monopolies can stay in business.
but being lazy by ignoring the laws and then blaming the regulators like its a total surprise is just reasons why i see the half assed attempts of making exchanges always fail.
The regulators set up and enforce the stupid laws so they are the ones to blame.
in the UK it does not require holding $50M, this is the problem with people making exchanges.
The US may require. But UK has it's own stupid laws and regulations (just going through it online for a few minutes gave me a headache) and if one wants to remain compliant with all the insane regulation of other countries whilst conducting business internationally (even though it's only accepting or sending electronic funds and accepting and receiving BTC) then suddenly only 1 company may be able to afford to do so.
You write:
no one is locking out bitcoin businesses!!!!!
and then you write:
if your transacting less then £3mill a month then you only need to be FSA authorised... Over £3mill a month then you need to be FSA Accredited.
read the regs involved which mainly concern having code/policies inplace to recognise repeat customers to know how much they transact in FIAT to warn/avoid them going over limits. and require ID if they wish to continue over the limits. validate this information, either using 3rd parties services (credit agencies etc) or by requesting government supplied identification.
store the information as the regulations require of you and have policies to act/react to certain situations.
Don't you think it's a bit contradictious of you now? Who do you think is burdened with costs of time and money with this foolishness?
its not that hard to follow the regulations.
Are you an exchange owner, if so, which one and what is your experience?
the problem is that they dont bother, and then a small problem rears its head such as a scammer talking to their bank asking for a chargeback. which snowballs into bank investigations which lead to finding out an exchange has not even bothered to follow the guidelines. which manifests into the banks making a SARS report, which results in the exchange being shutdown.
simple solution. read the rules, follow them and you wont get shutdown.
Nopeit facepalms me to see all of these so called trusted exchanges cant even follow simple regulations. the banks /regulators are not out to get bitcoins. they are out to protect steal more of the peoples FIAT.
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