Legal best practices

[jonathan2]

Since exchanges and buy & sell platforms have been around for a while now where some have been able to stay alive and some have perished for one reason or another. Can we at this stage draw any best practices from a legal point of view of what is need as a legal framework in order to operate as a business - or is this still too early to decipher?

You read almost every week that someone got arrested for money laundering in the news whereas companies such as Coinbase and Mt Gox have yet to seize operations.  

Thanks.

[empoweoqwj]

Always amazed by people that post "legal stuff" yet don't even mention what country they are operating in. Details people, details.

[whyinvestinbitcoin]

I personally believe that existing rules and frameworks in most westernised countries should be easily applicable to bitcoin businesses and services. Why should the rules of a Money Exchange that exchanges BTC or Cryptos be any different to a ME dealing with fiat? All that is different here is that XBT is a new currency. It should be added to the marketplace like any other.

As for business, they should consider it like any other currency. i.e. if they accept payment in a currency other than their own local currency, they will have to pay taxes to the local government in the local/preferred currency and that any gains/loss from holding XBT should be realised and declared for tax purposes. That is until that local government decides to switch to XBT as their preferred currency and dumps their own central bank like a hot potato.

So much talk about 'whoa! Wat do we now do wit dat new currency we have here boy!' when really it should be treated like any other financial instrument or currency.

Just my opinion of course. Doesn't stop people lauding about like they're important... aka NY Regulators.

[empoweoqwj]

I personally believe that existing rules and frameworks in most westernised countries should be easily applicable to bitcoin businesses and services. Why should the rules of a Money Exchange that exchanges BTC or Cryptos be any different to a ME dealing with fiat? All that is different here is that XBT is a new currency. It should be added to the marketplace like any other.

As for business, they should consider it like any other currency. i.e. if they accept payment in a currency other than their own local currency, they will have to pay taxes to the local government in the local/preferred currency and that any gains/loss from holding XBT should be realised and declared for tax purposes. That is until that local government decides to switch to XBT as their preferred currency and dumps their own central bank like a hot potato.

So much talk about 'whoa! Wat do we now do wit dat new currency we have here boy!' when really it should be treated like any other financial instrument or currency.

Just my opinion of course. Doesn't stop people lauding about like they're important... aka NY Regulators.

Yep. Just your opinion. If only we could set our own laws must countries are deciding bitcoin is not a currency.

[qwk]

Can we at this stage draw any best practices from a legal point of view of what is need as a legal framework in order to operate as a business

Very generic framework:
get your stuff together, file what you need to file, prepare for a grinding halt if you fail to comply.

[danieldaniel]

Can we at this stage draw any best practices from a legal point of view of what is need as a legal framework in order to operate as a business

Very generic framework:
get your stuff together, file what you need to file, prepare for a grinding halt if you fail to comply.

Pretty much this.  The reason that you haven't seen companies like Coinbase (MtGox actually has had a seizure in the U.S.) stopping operations is that they did their due diligence (they got their stuff together, filed what they needed to file, etc.).