2013-06-06 BTC Global Introduces Crowdsourced Bitcoin Regulation

[patricktim]

http://forexmagnates.com/compliance-through-alliance-btc-global-introduces-crowdsourced-bitcoin-regulation/

Seeing the landscape change, today’s bitcoin startups are beginning to take regulations and banking relationships more seriously, and viewing them as a necessary annoyance. However, while firms are taking more precaution, it comes at a cost. Explaining the difficulties, Steven Morrel, Co-Founder and CPO at BTC Global expressed to Forex Magnates that to really make sure you are covering yourself in terms of regulation, firms needs be registered in each country or state they do business in. As such, Morrel added that this means “employing lawyers and paying for fees in each state or country. It’s a huge difficulty for startups.”

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[aigeezer]

I love the cheeky BTC Global approach to the threat of death by a thousand regulatory cuts.

"With its team situated around the world, BTC Global considers itself a ‘true’ distributed startup. Utilizing the same methodology of leveraging its team’s knowledge and resources from around the globe that it is using to operate BTC Global, the company wants to do the same thing for bitcoin regulation."

Beat the bureaucrats at their own game! Crowd-source compliance issues.

As for actual implementation, who knows? Will they be predator or prey? Will they find the right balance? Should BTC comply with every local ordinance in the first place, and is it even possible? Who knows - I just like their twist on the situation. "Providing a solution, BTC Global has announced today what they call “Massive Parallel Licensing”."

The BTC community is looking pretty nimble, compared to the ponderous regulator community. Fascinating.

[bigdude]

Fascinating indeed.

Their spin on things could work in the beginning ... get registered, other used them as agents etc.

Then USD Fed will simply change the rules and poof, gone. Then back to the drawing board.

[BCB]

Also discussed more in depth here:
https://bitcointalk.org/index.php?topic=231238.msg2433173#msg2433173

[bb999]

http://forexmagnates.com/compliance-through-alliance-btc-global-introduces-crowdsourced-bitcoin-regulation/

Seeing the landscape change, today’s bitcoin startups are beginning to take regulations and banking relationships more seriously, and viewing them as a necessary annoyance. However, while firms are taking more precaution, it comes at a cost. Explaining the difficulties, Steven Morrel, Co-Founder and CPO at BTC Global expressed to Forex Magnates that to really make sure you are covering yourself in terms of regulation, firms needs be registered in each country or state they do business in. As such, Morrel added that this means “employing lawyers and paying for fees in each state or country. It’s a huge difficulty for startups.”

This article strikes me as very U.S. centric and may be a great example of the future of bitcoin innovation being in other countries.

[BTCLuke]

I see that BTCGlobal spammed it's press release far and wide... It's a shame sites like that one had to pick up our dirty laundry.

...But perhaps something good comes out of it as those forex-minded folk start thinking about (and accepting) the idea of a distributed exchange before we give them a real one.