[BitFunder] Asset Exchange Marketplace + Rewritable Options Trading

[MPOE-PR]

I see nothing wrong with a exchange offering securities where it is up to the investor to make decisions.

Of course it's up to the investor to make decisions. But about securities. Securities, not the half-baked fantasies of people with nothing to offer gluing plumage to themselves in an effort to look like fine birds.

Kickstarter is not securities. School fundraisers are not securities. Hopeful people whose qualifications consist of "passion" are not securities issuers. So long as the twain are mod-podged into meeting, "underestimations" will be made, "unfortunate" "winding downs" will be had, and plenty of noobs will imagine it's "because government".

Again:

So, we've all had our fun scoffing at regulators, but now that we've got that out of our system (and our portfolio's are down 60%) are we ready to make a regulated US exchange?

No. If you want regulated US stuff check out the dollar, it might be more up your alley.

This would have the perks of inviting more liquidity from larger market participants, as well as more stability and predictability.

Playing around with other experiments such as decentralized exchanges and colored coins just invites unpredictable illiquidity and instability.

The Securities and Exchange Commissions offers plenty of regulatory exemptions for the kinds/sizes of companies that have so far "IPO'd" in bitcoin land, the exchanges might have a more uphill battle but its time to cross the bridge

Like many people posting about this stuff lately, you seem a bit confused as to what the problem is, and what solutions exist.

Have a read.

[Puppet]

Please Crumbs, when was the last time SEC vetted the business models of the companies listed on public exchanges in the US?

Clearly thats not the job of the SEC and similar organisations all over the world, but what registering securities with them does guarantee is precisely whats been lacking with bitcoin securities: transparency. A registered security at least guarantees you know who you are dealing with (Labcoin anyone?), it guarantees the issuer makes public all kinds of relevant information regarding the business, business plan, financials etc so that investor can actually make a rational decision and doesnt have to gamble on it being yet another scam or not.

Of course that doesnt help too much if these securities trade on platforms that close their doors one day for whatever reason, possibly taking customer funds with them, hence a need to trade them on regulated exchanges. Now thats going to be a tall order for a bitcoin venture, but perhaps the crowd funding legislation you alluded to in your next post will make this more viable. I certainly hope so. Right now the bitcoin security (misnomer if there ever was one) scene is more akin to a casino on second life, than a true investment market.

[pedrog]

So, is the new JOBS Act good for us in bitcoin securities?

[Pale Phoenix]

If he is in the U.S. he must register as a broker / dealer to operate Bitfunder, whether he allows U.S. residents to participate or not.

What I don't understand is why does he not register? The person who bites the bullet and offers the first US legal Bitcoin stock exchange stands to become billionaire rich over the next decade. People join startups and risk 5 years of their life for an opportunity such as this. Ukyo stands to gain so much if he navigated the system instead of playing games.

Anyway, once the crowdfunding law comes into effect someone will dominate this space, be that Bitfunder or someone else.

The crowdfunding regs have nothing to do with operating an exchange. And far from making an exchange owner rich, the new regs are probably the final nail in the coffin of BTC securities. If the regs make it significantly easier to raise money, few companies will choose to limit themselves by issuing BTC denominated securities. They will issue in USD to take advantage of the larger (by orders of magnitude) market of investors.

As for Bitfunder, any BTC exchange would have to comply with the same rules and regulations as existing USD broker-dealers. Specifically:

A broker-dealer may not begin business until:

it has properly filed Form BD, and the SEC has granted its registration;
it has become a member of an SRO [Self Regulatory Agency];
it has become a member of SIPC, the Securities Investor Protection Corporation;
it complies with all applicable state requirements; and
its "associated persons" have satisfied applicable qualification requirements.

Link: http://www.sec.gov/divisions/marketreg/bdguide.htm#III

Bottom line: there isn't enough money in it to run a compliant BTC securities exchange. The market is too small and it will be even smaller when companies can crowdfund in USD.

[EskimoBob]

" All current BitFunder users who are not United States persons or entities must supply the information required to obtain "Verified" status on their linked WeExchange account before November 1, 2013. Any such users who fail to provide the necessary information will not be able to enter into or sell positions on the BitFunder website as of November 1, 2013."

Ukyo, you are asking for personal information or you will screw people over by locking their accounts. (what will that prove or fix what ever you are attempting to?)

Please prove, that you can follow EU personal information protection guide lines and can guarantee the safety of personal information sent to you.

PS! There are multiple threads and post regarding SEC and US citizen running a exchange. SEC has nothing to do with you and your exchange, unless you are a from US. So, what is going on? If I recall, you are in China?

[sparky999]

have been waiting verification on weexchange for 15 days now?!!!! how long is this going to take??

[ewibit]

Please prove, that you can follow EU personal information protection guide lines and can guarantee the safety of personal information sent to you.

yes pls

[ffssixtynine]

Waiting for verification and my missing money to be moved... Grrr.

[bobboooiie]

hopefully you can catch up ukyo or prolong the deadline

[moribana]

have been waiting verification on weexchange for 15 days now?!!!! how long is this going to take??

I've been waiting also for two weeks and finally today I got verified. So it seems that it works, you just have to be patient because Ukyo has a lot of things to do.

[superbit]

So if you are non-US, but not verified yet do your assets just stay put until you get verified?

[crumbs]

" All current BitFunder users who are not United States persons or entities must supply the information required to obtain "Verified" status on their linked WeExchange account before November 1, 2013. Any such users who fail to provide the necessary information will not be able to enter into or sell positions on the BitFunder website as of November 1, 2013."

Ukyo, you are asking for personal information or you will screw people over by locking their accounts. (what will that prove or fix what ever you are attempting to?)

Please prove, that you can follow EU personal information protection guide lines and can guarantee the safety of personal information sent to you.

PS! There are multiple threads and post regarding SEC and US citizen running a exchange. SEC has nothing to do with you and your exchange, unless you are a from US. So, what is going on? If I recall, you are in China?

Dear EskimoBob
Kindly familiarize yourself with the full text of our terms & conditions, provided below in its entirety, before seeking further assistance.

[HowlingMad]

Question: I am a US citizen,etc.  I have sell orders created for a reasonable discount, not these 'fire sale' prices.  Will Bitfunder honor these sell orders after Nov. 1?

So if the sell orders execute on say Nov 15th, am I good or do I have to bite the bullet now and sell everything at 'fire sale' prices.  As I understood it, Dec 1st is the real 'drop dead' date and then it is between the issuer and I.

Thanks in advance.

[crumbs]

^^Note the text pertaining to entering into or SELLING positions.

[HowlingMad]

^^Note the text pertaining to entering into or SELLING positions.

Crap.  Missed the last little part.  So 'fire sale' or take my chances that the issuers will give me a decent price on Dec. 1

[pedrog]

^^Note the text pertaining to entering into or SELLING positions.

Crap.  Missed the last little part.  So 'fire sale' or take my chances that the issuers will give me a decent price on Dec. 1

Well, you may find other options out there.


How long have people been waiting for the verified status?

[pascal257]

^^Note the text pertaining to entering into or SELLING positions.

Does that mean that one must submit information before Nov 1st, but needn't be verified til then?

[bobboooiie]

I was refused after 3 weeks because my name didint match with my profile... THERE IS NO EDIT BUTTON ON PROFILE SITE ! How exactly you expect me to have them there when this site was anonymous at first?

[BitCsByBit]

I was refused after 3 weeks because my name didint match with my profile... THERE IS NO EDIT BUTTON ON PROFILE SITE ! How exactly you expect me to have them there when this site was anonymous at first?

I'm sure you wont be the last one.

I expect the same response.

[stephwen]

I was refused after 3 weeks because my name didint match with my profile... THERE IS NO EDIT BUTTON ON PROFILE SITE ! How exactly you expect me to have them there when this site was anonymous at first?

same for me