Bitstamp: Should we be worried about it being shut down?

[Spekulatius]

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:

BITSTAMP LTD.

5 Jupiter House
Calleva Park, Aldermaston
Reading
Berkshire RG7 8NN
United Kingdom

DOCUMENTS IN KYC PROCEDURE

WARNING: Below listed documentation and information is only given as exemplary cases and should only be interpreted as such. Bitstamp reserves the right to determine if additional information or documentation is required.

- Photo ID: Drivers Licence, National Identity Card or Passport
- Proof of residence: A separate proof of address is required in the form of a utility bill, bank or credit card statement (issued within last three months).

Information collected

Information collected by Bitstamp are:
•Your name;
•Your photographic identification, including a high quality image of your government issued ID;
•Your address;
•Your e-mail address;
•Your banking details including account numbers;
•Your date of birth; and
•Your trades.

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


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

Bank name:   Unicredit banka Slovenija d.d.
Address:   Smartinska 140
City:   1000 Ljubljana
Country:   Slovenia
BIC (SWIFT):   BACXSI22

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?

[EscrowBTC]

Why to worry?

There are other good wallets..

[Spekulatius]

Why to worry?

There are other good wallets..

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

[EscrowBTC]

For sure! I hate this type of situations!

Holders of big amounts are most affected..

[QuantPlus]

Why to worry?

There are other good wallets..

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

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.

[Spekulatius]

Why to worry?

There are other good wallets..

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

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.

[kakobrekla]

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

Good luck.

[bitcodo]

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.

[EuroTrash]

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

Good luck.

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.

[kakobrekla]

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

Good luck.

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?!

[dtuur]

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

[Pangia]

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.

[oblongmeteor]

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.  

[codesuela]

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.

[Spekulatius]

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

[Boelens]

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.

[Spekulatius]

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/

[zeroblock]

Why to worry?

There are other good wallets..

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

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.

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

[flound1129]

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.

[kakobrekla]

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

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