Why doesnt someone make a cash only exchange?

[empoweoqwj]

who says the website needs to be based in the US?

and we have taken the "cash" out of the equation

It would be great if someone could write down a half-page summary of current idea, so I can try and wrap my head around it.

[exapted]

When I exchange money at a money changer counter, I am not asked for ID, so why can't money changers do the same with bitcoin?

In a country where bitcoin is not considered a currency, and where there are no regulations requiring ordinary businesses to obtain ID of customers who pay via bank deposit or other indirect means, then deposits can be anonymous because AML / KYC regulations might not apply. I'm not sure about that but I'm looking into it.

A money changer deals with currencies. Bitcoin is not a currency in virtually every country on the planet at the moment. That's why money changers can't "do the same" with bitcoin.

I was not assuming that Bitcoin is a currency. I ask, where is the precedent for requiring ID checking of customers for cash-only small-quantity Bitcoin exchanges, when the same requirement does not apply to cash-only currency exchange below some value per transaction?

Secondly, I have a question for anyone here: Iff Bitcoin is not a currency, then how and when should KYC regulations apply to deposits/withdrawals to/from Bitcoin exchanges?

[empoweoqwj]

When I exchange money at a money changer counter, I am not asked for ID, so why can't money changers do the same with bitcoin?

In a country where bitcoin is not considered a currency, and where there are no regulations requiring ordinary businesses to obtain ID of customers who pay via bank deposit or other indirect means, then deposits can be anonymous because AML / KYC regulations might not apply. I'm not sure about that but I'm looking into it.

A money changer deals with currencies. Bitcoin is not a currency in virtually every country on the planet at the moment. That's why money changers can't "do the same" with bitcoin.

Secondly, I have a question for anyone here: Iff Bitcoin is not a currency, then how and when should KYC regulations apply to deposits/withdrawals to/from Bitcoin exchanges?

Because people withdraw fiat from bitcoin exchanges.

[t1000]

When I exchange money at a money changer counter, I am not asked for ID, so why can't money changers do the same with bitcoin?

In a country where bitcoin is not considered a currency, and where there are no regulations requiring ordinary businesses to obtain ID of customers who pay via bank deposit or other indirect means, then deposits can be anonymous because AML / KYC regulations might not apply. I'm not sure about that but I'm looking into it.

A money changer deals with currencies. Bitcoin is not a currency in virtually every country on the planet at the moment. That's why money changers can't "do the same" with bitcoin.

I was not assuming that Bitcoin is a currency. I ask, where is the precedent for requiring ID checking of customers for cash-only small-quantity Bitcoin exchanges, when the same requirement does not apply to cash-only currency exchange below some value per transaction?

Secondly, I have a question for anyone here: Iff Bitcoin is not a currency, then how and when should KYC regulations apply to deposits/withdrawals to/from Bitcoin exchanges?

I would imagine a crypto only exchange would not necessarily need to comply with AML/KYC at this point. Bitcoin is either a currency or it is not.  Applying currency rules to it in some places and not other is double standard.

[empoweoqwj]

When I exchange money at a money changer counter, I am not asked for ID, so why can't money changers do the same with bitcoin?

In a country where bitcoin is not considered a currency, and where there are no regulations requiring ordinary businesses to obtain ID of customers who pay via bank deposit or other indirect means, then deposits can be anonymous because AML / KYC regulations might not apply. I'm not sure about that but I'm looking into it.

A money changer deals with currencies. Bitcoin is not a currency in virtually every country on the planet at the moment. That's why money changers can't "do the same" with bitcoin.

I was not assuming that Bitcoin is a currency. I ask, where is the precedent for requiring ID checking of customers for cash-only small-quantity Bitcoin exchanges, when the same requirement does not apply to cash-only currency exchange below some value per transaction?

Secondly, I have a question for anyone here: Iff Bitcoin is not a currency, then how and when should KYC regulations apply to deposits/withdrawals to/from Bitcoin exchanges?

I would imagine a crypto only exchange would not necessarily need to comply with AML/KYC at this point. Bitcoin is either a currency or it is not.  Applying currency rules to it in some places and not other is double standard.

You cannot say "bitcoin is either a currency or not" unfortunately. Each country has a right to decide on that question, and it will take years for some to answer it. Very few have to date.

[t1000]

When I exchange money at a money changer counter, I am not asked for ID, so why can't money changers do the same with bitcoin?

In a country where bitcoin is not considered a currency, and where there are no regulations requiring ordinary businesses to obtain ID of customers who pay via bank deposit or other indirect means, then deposits can be anonymous because AML / KYC regulations might not apply. I'm not sure about that but I'm looking into it.

A money changer deals with currencies. Bitcoin is not a currency in virtually every country on the planet at the moment. That's why money changers can't "do the same" with bitcoin.

I was not assuming that Bitcoin is a currency. I ask, where is the precedent for requiring ID checking of customers for cash-only small-quantity Bitcoin exchanges, when the same requirement does not apply to cash-only currency exchange below some value per transaction?

Secondly, I have a question for anyone here: Iff Bitcoin is not a currency, then how and when should KYC regulations apply to deposits/withdrawals to/from Bitcoin exchanges?

I would imagine a crypto only exchange would not necessarily need to comply with AML/KYC at this point. Bitcoin is either a currency or it is not.  Applying currency rules to it in some places and not other is double standard.

You cannot say "bitcoin is either a currency or not" unfortunately. Each country has a right to decide on that question, and it will take years for some to answer it. Very few have to date.

Ok. In a given country that is governed by law, bitcoin is either legally a currency or it is not legally a currency.

[User705]

When I exchange money at a money changer counter, I am not asked for ID, so why can't money changers do the same with bitcoin?

In a country where bitcoin is not considered a currency, and where there are no regulations requiring ordinary businesses to obtain ID of customers who pay via bank deposit or other indirect means, then deposits can be anonymous because AML / KYC regulations might not apply. I'm not sure about that but I'm looking into it.

A money changer deals with currencies. Bitcoin is not a currency in virtually every country on the planet at the moment. That's why money changers can't "do the same" with bitcoin.

I was not assuming that Bitcoin is a currency. I ask, where is the precedent for requiring ID checking of customers for cash-only small-quantity Bitcoin exchanges, when the same requirement does not apply to cash-only currency exchange below some value per transaction?

Secondly, I have a question for anyone here: Iff Bitcoin is not a currency, then how and when should KYC regulations apply to deposits/withdrawals to/from Bitcoin exchanges?

I would imagine a crypto only exchange would not necessarily need to comply with AML/KYC at this point. Bitcoin is either a currency or it is not.  Applying currency rules to it in some places and not other is double standard.

All businesses that are open to the public and deal with cash must have aml/kyc policies in place.  That doesn't mean they will check everyone's ID it means that there must exist policies and procedures to deal with it.  Just like a gold coin shop doesn't check ID for small deals the same would apply to a cash for bitcoins business.  Crypto to crypto exchanges will likely not need aml/kyc unless governments accept cryptos are real currency.  Some have, some haven't.