Advice & guidelines for setting up a Bitcoin exchange?

[blinkyspoogle]

Hello I realize I am likely to get a nub-bashing for making such an audacious first post... (long time lurker, first time poster!:)

With the demise of Mt Gox I think the entire community feels that there needs to be more exchanges globally.

In the UK there is a distinct lack of a transparent escrow-based trading platform and therefore I am considering building one... CoinFloor was meant to be our savior (4 months ago...)

I have a few questions:

1) How much BTC do you think the site would need for an original start-out supply
2) How much fiat capital would be required for the escrow system to function smoothly
3) Would any exchange admins be willing to provide me/my partner a mentoring role in return for a share of the business? In my experience it's always better to learn from other peoples mistakes...

Tear me down if you like; you'd probably be right to - who is this blonking spiggle, talking about setting up an exchange in his first post?!

The guy who doesn't speak but pays attention is just as much a community member as the guy who posts every day

Thanks

[blinkyspoogle]

Bumparoo

[hilariousandco]

There's a couple UK-based Bitcoin exchanges:

https://bitbargain.co.uk/
https://bittylicious.com/

And also localbitcoins.

[BitCoinDream]

Hello I realize I am likely to get a nub-bashing for making such an audacious first post... (long time lurker, first time poster!:)

With the demise of Mt Gox I think the entire community feels that there needs to be more exchanges globally.

In the UK there is a distinct lack of a transparent escrow-based trading platform and therefore I am considering building one... CoinFloor was meant to be our savior (4 months ago...)

I have a few questions:

1) How much BTC do you think the site would need for an original start-out supply
2) How much fiat capital would be required for the escrow system to function smoothly
3) Would any exchange admins be willing to provide me/my partner a mentoring role in return for a share of the business? In my experience it's always better to learn from other peoples mistakes...

Tear me down if you like; you'd probably be right to - who is this blonking spiggle, talking about setting up an exchange in his first post?!

The guy who doesn't speak but pays attention is just as much a community member as the guy who posts every day

Thanks

1. Nothing, because u r planning for an escrow based system. If u want to operate like Mt. Gox or BTC China, u need capital.

2. Again nothing, because u r planning for an escrow based system. If u want to operate like Mt. Gox or BTC China, u need capital.

3. I may help u in setting up your exchange, but I wont reveal my identity and accept payment only in BTC.

[1Neptune]

Hello I realize I am likely to get a nub-bashing for making such an audacious first post... (long time lurker, first time poster!:)

With the demise of Mt Gox I think the entire community feels that there needs to be more exchanges globally.

In the UK there is a distinct lack of a transparent escrow-based trading platform and therefore I am considering building one... CoinFloor was meant to be our savior (4 months ago...)

I have a few questions:

1) How much BTC do you think the site would need for an original start-out supply
2) How much fiat capital would be required for the escrow system to function smoothly
3) Would any exchange admins be willing to provide me/my partner a mentoring role in return for a share of the business? In my experience it's always better to learn from other peoples mistakes...

Tear me down if you like; you'd probably be right to - who is this blonking spiggle, talking about setting up an exchange in his first post?!

The guy who doesn't speak but pays attention is just as much a community member as the guy who posts every day

Thanks

Well, you've got guts, I'll give you that. I like your statement about the one who doesn't speak also being a member of the community. They're called lurkers. Some even de-lurk and start posting (like you and me, eh?).

Learning from other people's mistakes is cheaper. They pay the cost of the mistake; your cost is only observing, analyzing and learning from the analysis.

Good luck with your exchange.

[blinkyspoogle]

Thanks 1Neptune

Obviously if there was nothing but lurkers it wouldn't be much of a community, however at the same time the quality of information being shared would be vastly improved if some opted to lurk instead ha !

I really don't see much point in posting unless you've something to say that hasn't been said already

As for balls, fortunately I have found a partner who's balls may be even bigger than mine!

But yeah, thinking about it this probably does win the 'Most Ambitious First Post Ever' award!!

Thanks for the wishes of good luck, I'll take all I can get

[m25Link]

Stand by for an even more audacious post from someone who has done zero lurking...

I am setting up a company like ebay which will operate only in London. I will settle all my trades in bitcoin and pay my staff in bitcoin.

Staff will be able to come into my office in london to exchange their bitcoin into pound sterling.

Eventually I aim to make it easy for all independent shops in london to convert bitcoin into cash.

To be clear:
1. I want to buy bitcoin from this exchange
2. I want to pay my staff in bitcoin
3. I want local shops to convert bitcoin into cash
4. I want this exchange to buy bitcoin from the local shops

I have no problem with the previous poster wishing to be anonymous.

How long before we can set this up?

Chris

[Sonny]

Welcome

If you are trying to make a "escrow-based trading platform", I don't think you need to prepare bitcoin for the site.

BTW, have you considered the regulatory issues??

[1Neptune]

Stand by for an even more audacious post from someone who has done zero lurking...

I am setting up a company like ebay which will operate only in London. I will settle all my trades in bitcoin and pay my staff in bitcoin.

Staff will be able to come into my office in london to exchange their bitcoin into pound sterling.

Eventually I aim to make it easy for all independent shops in london to convert bitcoin into cash.

To be clear:
1. I want to buy bitcoin from this exchange
2. I want to pay my staff in bitcoin
3. I want local shops to convert bitcoin into cash
4. I want this exchange to buy bitcoin from the local shops

I have no problem with the previous poster wishing to be anonymous.

How long before we can set this up?

Chris

As Sonny noted above regarding regulatory issues, with London taxing vehicles that drive through certain sections of town, I'd take it as only logical that the local, and probably national, government has many hoops to jump through in order to do what you're planning on doing. A visit to your local legal consulting authority (barrister?) would probably be of great benefit in avoiding unwanted attention from the authorities in the future.

Good luck in your new venture!

[Sonny]

As Sonny noted above regarding regulatory issues, with London taxing vehicles that drive through certain sections of town, I'd take it as only logical that the local, and probably national, government has many hoops to jump through in order to do what you're planning on doing. A visit to your local legal consulting authority (barrister?) would probably be of great benefit in avoiding unwanted attention from the authorities in the future.

Exactly.

For programming issues, you can find a friend, or hire some programmers to do the job.
For funding issues (for hosting/advertising/hiring programmers, etc.), you can get some from relatives/friends, or do some cloud funding.

But, for regulatory issues, you really need to make sure you have fulfilled every requirements or your site may be taken down and you can be arrested one day lol.

[blinkyspoogle]

Indeed, this is at the forefront of my considerations !

HMRC is due to set new guidelines for BitCoin taxation which are reputed to be favorable, dropping the current requirement to pay capital gains tax and instead treating it as a private currency

Regarding 'Know your user' requirements, I think we've got that covered.

Many thanks to the community for considering our freedom an asset worth protecting !

[1Neptune]

Indeed, this is at the forefront of my considerations !

HMRC is due to set new guidelines for BitCoin taxation which are reputed to be favorable, dropping the current requirement to pay capital gains tax and instead treating it as a private currency

Regarding 'Know your user' requirements, I think we've got that covered.

Many thanks to the community for considering our freedom an asset worth protecting !

Well, we fought one revolutionary war over it (freedom). Why not another?