2013-08-06 ContrarianCompliance: "Bitcoin Won't Survive Unless It's Compliant"

[juanbllanos]

http://contrariancompliance.com/2013/08/06/compliance-enabled-legitimacy-is-key-to-bitcoins-survival/

[CoinChex]

This is a great article.  Very interesting stuff. I'm a compliance officer at a broker/dealer and deal with all sorts of AML issues on the B/D and Advisory side.  The first thing I thought of when I discovered this were the compliance issues that businesses and individuals would encounter.  At the end of the day we need strong policies and procedures to make sure FINCEN and the govt will adopt the industry.

[niko]

First of all, Bitcoin has been surviving without compliance. The question is can it keep growing without compliance? - probably not much more than what we've got today.

Another question: is government-issued cash compliant? Much less than even today's bitcoin. With Bitcoin, there is at least a trace in the blockchain. With cash, not so much - and yet, cash is surviving.

[juanbllanos]

This is a great article.  Very interesting stuff. I'm a compliance officer at a broker/dealer and deal with all sorts of AML issues on the B/D and Advisory side.  The first thing I thought of when I discovered this were the compliance issues that businesses and individuals would encounter.  At the end of the day we need strong policies and procedures to make sure FINCEN and the govt will adopt the industry.

Thanks for the kind feedback, CoinChex!

[juanbllanos]

First of all, Bitcoin has been surviving without compliance. The question is can it keep growing without compliance? - probably not much more than what we've got today.

Another question: is government-issued cash compliant? Much less than even today's bitcoin. With Bitcoin, there is at least a trace in the blockchain. With cash, not so much - and yet, cash is surviving.

Excellent point, niko.  That's one of the main arguments we plan to use to defend virtual currencies at the Bitcoin foundation.

[niko]

First of all, Bitcoin has been surviving without compliance. The question is can it keep growing without compliance? - probably not much more than what we've got today.

Another question: is government-issued cash compliant? Much less than even today's bitcoin. With Bitcoin, there is at least a trace in the blockchain. With cash, not so much - and yet, cash is surviving.

Excellent point, niko.  That's one of the main arguments we plan to use to defend virtual currencies at the Bitcoin foundation.

Thanks! Another way to put it is: Bitcoin cannot be compliant or not compliant. It is simply a technology. People who operate businesses or simply use bitcoins can be compliant or not compliant.

[Dabs]

The way Bitcoin is set up: it's rules, it's protocol, the way it is decentralized, the way anyone can create a brand new, never used bitcoin address, the way it is difficult to link one address to another, or one address to an identity ... the users and the miners (who are probably also users) of the currency, they can be complaint or they can not. It does not matter.

Bitcoin just is. Compliance may speed up mass adoption, but it is certainly optional.