So how many more coins need to be stolen before it's no longer a problem? What if coinbase were to disappear? Bitstamp? OKCoin? Houbi? Bitfinix? Are you cool with those companies having no oversight and all those people having their coins and fiat disappear overnight? I'm personally not. I believe in consumer protection.
I don't have anything against that kind of companies. If you want government regulated companies, then put your money there, but don't force everyone running a bitcoin exchange to be regulated by the government, and therefore any trader/investor to use regullated companies. As a libertarian I don't want any government meddling.
Let the consumers be free to spend/transfer bitcoins whenever and whereever they want. But if companies are doing business on the consumers behalf, they should at least be held accountable to some standards.
They already are in the unhampered free market. Their profits depend on how much their are trusted by their consumers. To win money, they have to please consumers, not regulators.
Could you imagine if we followed your "Free market" corrections? Would you want to go to a doctor that doesn't have a license that is overseen by a board that makes sure he/she is qualified to treat you? Or would you be okay with dying knowing that eventually the free market will get rid of that doctor....and either another unfit doctor will take his place (and will be replaced once negilance occurs by the free market) or maybe you will get a good doctor to take their place? Or maybe it doesn't matter since you'd be dead anyways right?
Yes, I would like to be able to go to a doctor that doesn't have license. I would also like to be able to get a taxi that doesn't have any license. Or to be able to buy drugs from a seller.
It's the consumer who has to decide whether he wants to buy a service or not, not a burocrat. Licenses are just a form of monopoly given by governments. They artificially lower supply.
