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[Anonymous]

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[jgarzik]

If you'll take out of state customers, and your rates are reasonable, I am personally interested.

Furthermore, I think the bitcoin community desperately needs more exchanges such as yours.  Legitimizing bitcoin means proactively complying with government regulations, and playing within the rules.

Well done!

[davout]

So you're going to buy/sell with a spread ?

[twobitcoins]

Is this a market service where customers trade with each other, or an exchange where customers trade with you at buy/sell prices you specify?

I tend to prefer a market based approach, but there is room for both.  If you're going to offer larger spreads/worse prices than those available on Mt. Gox, it won't be so appealing.  I definitely like the idea of transferring funds via standard methods like a normal business rather than making people deal with things like Liberty Reserve.

[dingus]

 I definitely like the idea of transferring funds via standard methods like a normal business rather than making people deal with things like Liberty Reserve.

+1 Same here. I guess LR has its uses but, I want a more legitimate way of exchanging.

[mndrix]

I'm interested.  The more ways to keep BTC on hand for CoinPal the better

[idev]

Sounds impressive good luck with your program sir. 

[Anonymous]

Wish you well dave.

[Drifter]

Fantastic . I'm excited to see the future of your work.

[alkor]

So for legal purposes, will you consider bitcoin as a "virtual currency" rather than "virtual commodity"? From my limited understanding, the latter definition is more convenient because it avoids having to deal with money laundering regulations.

[praxeologist]

I am pretty excited about this. Will I be able to scan or fax a copy of my ID? I guess that is what you meant by "register online". Anyhow this sounds like something I would start using immediately to transfer funds for my business.

[ColdHardMetal]

I think it's worth pursuing if only to see how the powers that be react when you submit all your paperwork.

[Nefario]

Why Utah, are you Mormons?

[praxeologist]

I guess I will have to look at how AML affects me. I know Paypal now gives 1099's to anyone making over 200 tx or some certain amount of money ($1K?). As much as I hate taxes and other laws I'd rather comply than be in jail.

The only concern I have is that your rate will be seriously out of step with mtgox, especially at first. I'm not sure what else there could be for US people to be negative about. I don't want to use paypal or credit cards for my store if possible. Bitcoin needs more ways to get them without crazy fees or having to go to #otc and buy with paypal.

[bitjet]

Legitimizing bitcoin means proactively complying with government regulations, and playing within the rules.

I dont agree. At all. The government doesnt even play by its own rules. If you do your best to work within its regulation they will likely see you as a threat to the us dollar and come down hard on you no matter if you play by their rules or not.

[Drifter]

I guess I will have to look at how AML affects me. I know Paypal now gives 1099's to anyone making over 200 tx or some certain amount of money ($1K?). As much as I hate taxes and other laws I'd rather comply than be in jail.

Paypal is going to give 1099s for 200 transactions or $20,000.


I don't see what anyone would have to complain about in your service david. It's not like they'd be forced to use it.

[praxeologist]

I guess I will have to look at how AML affects me. I know Paypal now gives 1099's to anyone making over 200 tx or some certain amount of money ($1K?). As much as I hate taxes and other laws I'd rather comply than be in jail.

Paypal is going to give 1099s for 200 transactions or $20,000.

I don't see what anyone would have to complain about in this service. It's not like they'd be forced to use it.

Thanks for the clarification, I forgot the amount. I didn't really mean to say complain in this way. There is usually some downside to any of these methods to get or cash out BTC. I am just going to wait for more details and I am optimistic about it.

Complaints about Paypal and credit card processors seem valid to make. They certainly play a role in the government fighting any form of sound money. In my case I am going to be selling electronic cigarettes, which are clearly much safer than tobacco, yet places like NY are trying to ban them. Paypal will freeze accounts dealing with them and vendors are forced to use high-risk credit card processors with even more ridiculous fees. So, I have to agree with bitjet's comment in some sense. Let's hope this works and remains hassle-free.

[praxeologist]

Sounds good then, thanks for the clarification. I thought it could differ from MtGox significantly. So, this is sort of like a BTC-friendly Dwolla with a slightly higher fee. (not complaining!)

I was already going to be charging $5 for shipping under $75 orders where most orders will be $5.95 priority boxes, so I will point that out in conjunction with your fee to customers. I'm still pretty new to using ACH, or at least paying attention to how fast they take to clear. Do you have an idea what I can expect?

Say I have a customer learn about bitcoin and your service who wants to order on a Tuesday night. They will need to scan/fax an ID to you the next day and input bank info. Are you going to then do one of those random transaction amount things where the person has to verify the account, before they can send money? That would take a couple days maybe, then another couple for the money they send for BTC to clear. Am I going to get paid that week? I could be totally off here, just trying to get a feel for how it will work.

[praxeologist]

We will be accepting e-checks (ACH), cash, or certified money orders/cashier's checks. E-check transaction fee will be $1.

I didn't say any fees you were charging besides that. I guess I misunderstood though, thinking that e-check meant 2-way. I'm not worried that much about a little fee when I need to cash out. I'd rather have that than have it be on my customers.

So, I need to maybe count on about a full week in the worst case scenarios, from the time a person decides to start the process of buying from me for the first time. That is fine. Doing the address verification is a good thing. My potential customer base, besides those who've already adopted bitcoin, are generally less tech-savvy than average.

I will just wait for more details and let you sort everything out.