Maybe 3rd Party Services *do* need Regulation. Not Bitcoin.

[BittBurger]

Is it possible to regulate third party services like the companies these amateurs keep starting, and screwing up... without "regulating Bitcoin" in the process?

Are they two different things?

If you don't know what the f*ck you're doing, stop creating businesses that put people's money at risk.  
Seriously.  Im talking to you Flexcoin:
http://www.theguardian.com/technology/2014/mar/04/bitcoin-bank-flexcoin-closes-after-hack-attack

We don't need this right now.  
So you charge extra fee for people to store their coins the *only* safe way? 
What kind of company policy is that?  Its your job to secure their funds dummies.  Its your cost.

I personally *do* feel that companies like this should be brought to trial and put in jail.
"Throwing their hands up" as a result of millions of dollars lost is nonsense.  
There needs to be strict punishments for this.

More importantly, without regulation, how will average consumers know what company is safe to store their coins with?
There's *just* as much possibility that its being created with the intent to scam, as there is that its being run by a bunch of amateurs.

Can we regulate 3rd party services without regulating Bitcoin?

-B-

[Predatorian]

It's your choice to exchange BTC to cash or other currency, u can gain more money or lose. Risk for sure can give u profit.

[BittBurger]

It's your choice to exchange BTC to cash or other currency, u can gain more money or lose. Risk for sure can give u profit.

This doesn't address my post at all. 

-B-

[retrend]

How will regulation prevent hacking thefts?

[Aswan]

How will regulation prevent hacking thefts?

This will regulate itself. Hacking thefts will eventually lead to people taking responsibility for their coins instead of leaving them with someone else.

[BittBurger]

How will regulation prevent hacking thefts?

Laws for storage.  Requirements for security measures to be met.  Requirements for a security team *at all*.

Strict punishment if a company like Flexcoin "accidentally" loses millions of dollars and thnks they can just say "Oh well!" in a press release (unreal).

Such punishments will discourage a lazy attitude or risk taking on the part of the company.

There are a lot of ways that regulation can be allowed, without Bitcoin itself being affected at all.  I think?  (thats why im asking in the first post)

They make rules for businesses that pollute the air, too.  So that public health cancer rates don't skyrocket.

Is all regulation bad?

[BittBurger]

So what happens to the CEO of Flexcoin now?

Nothing?   He writes a press release then goes on with his day?

I assume law enforcement will be arresting him soon and putting him on trial to answer for his actions, right?

Just like any other company on earth?

[retrend]

I personally don't think regulation would stop thefts, I don't see governments being particularly competent in any IT issues so I don't think some increased red tape from them would be capable of preventing thefts.  I think the thefts themselves probably will do more to encourage security measures than government regulation, which would probably just drive a lot of btc businesses to locate in places with no onerous regulation requirements.

[DannyHamilton]

More importantly, without regulation, how will average consumers know what company is safe to store their coins with?

The same way they know that a particular bitcoin wallet is safe to store their coins with.

Transparency and review by the public.

Furthermore, unless the deposits are insured by a major global underwriter, they should NEVER be considered "safe to store your coins with".

[BittBurger]

More importantly, without regulation, how will average consumers know what company is safe to store their coins with?

The same way they know that a particular bitcoin wallet is safe to store their coins with.

Transparency and review by the public.

Furthermore, unless the deposits are insured by a major global underwriter, they should NEVER be considered "safe to store your coins with".

Hmm.

As there are more, and more, and more (into the hundreds) of companies providing services, this method isn't going to work.

I doubt there will be a clear, public concensus of reputation for every single startup, that is going to ensure people's money with them.

-B-

[DannyHamilton]

I doubt there will be a clear, public concensus of reputation for every single startup, that is going to ensure people's money with them.

Then people will have to learn giving money to such an un-reviewed startup service is a gamble that can result in significant loss. And startup services will have to learn how to attract customers with a maximum amount of transparency.

[Abdussamad]

So what happens to the CEO of Flexcoin now?

Nothing?   He writes a press release then goes on with his day?

I assume law enforcement will be arresting him soon and putting him on trial to answer for his actions, right?

Just like any other company on earth?

Nope. Did anything happen to the tradefortress? I don't think so.

[98koshop]

The best way as I see it to make a governmental IT department to preclude any possibility for hackers to steal money of btc customers