Implication of FinCEN stance on bitcoin exchanges

[johnkingx]

What are the implications on digital currency market places of this new development by FinCEN that Bitcoin Exchangers should be regulated as Money Transmitters. Is this signalling a change in direction by the authorities and a new regulation wave. Find link to http://www.coindesk.com/fincen-rules-bitcoin-payment-processors-exchanges-money-transmitters/ on FinCEN Rules Bitcoin Payment Processors, Exchanges are Money Transmitters

[MicroGuy]

I think there is the possibility that this could be the end of the road for cryptocurrencies in the USA, from a practical standpoint.

[mczarnek]

I think there is the possibility that this could be the end of the road for cryptocurrencies in the USA, from a practical standpoint.

Why?  It was already the case that Bitcoin exchanges had to implement Know Your Customer (KYC) for USA.. doesn't sound to me like this is saying anything new in that regard.

[MicroGuy]

I think there is the possibility that this could be the end of the road for cryptocurrencies in the USA, from a practical standpoint.

Why?  It was already the case that Bitcoin exchanges had to implement Know Your Customer (KYC) for USA.. doesn't sound to me like this is saying anything new in that regard.

These new rulings will affect many merchants also.

I suspect it will take a few days before the realizations sinks in as to what has happened.

[mczarnek]

I suspect it will take a few days for the realization to sink in as to what has happened.

So it affects payment processors like GoCoin and BitPay?  It means more work short term making sure they are up to date with regulations but in the long run more business for those companies since individual merchants will want to let them deal with the KYC laws.  It seems to me like it affects merchant to Bitcoin processors more than business to business.

If BitPay has to know it's customers.. which are merchants.. that's not a bad idea.  If it's everyday consumers, that's bad. I still don't feel a Bitcoin killer but very bad.

Does it affect customer to cryptocurrency processing solution?  Maybe customers will have to have Bitcoin addresses linked to known identities.. which would be bad but cryptocurrency killer?  I don't think so.  And when sending person to person transactions, this does not apply, which is one place where cryptocurrency is particularly valuable.

Was a bad idea to send a letter asking that question though, remember, it's easier to ask forgiveness than it is to get permission.

[chufchuf]

I think there is the possibility that this could be the end of the road for cryptocurrencies in the USA, from a practical standpoint.

Why?  It was already the case that Bitcoin exchanges had to implement Know Your Customer (KYC) for USA.. doesn't sound to me like this is saying anything new in that regard.

These new rulings will affect many merchants also.

I suspect it will take a few days before the realizations sinks in as to what has happened.

Merchants are exempt according to Lawsky. A merchant isn't the same as a payment processor. Why can't the merchants handle the bitcoin and immediately send them to coinbase or bitpay for them to instantly convert it?

[ThomasCrowne]

I think there is the possibility that this could be the end of the road for cryptocurrencies in the USA, from a practical standpoint.

Why?  It was already the case that Bitcoin exchanges had to implement Know Your Customer (KYC) for USA.. doesn't sound to me like this is saying anything new in that regard.

These new rulings will affect many merchants also.

I suspect it will take a few days before the realizations sinks in as to what has happened.

Merchants are exempt according to Lawsky. A merchant isn't the same as a payment processor. Why can't the merchants handle the bitcoin and immediately send them to coinbase or bitpay for them to instantly convert it?

lmao!  oh well hell, if he said that!  Don't get it confused, just because Lawsky say's something today doesn't mean it can't be squashed the very next week with additional BS rules and regulations.

What's this going to do to BTC in the states?  My opinion is fee's for places like Coinbase, etc. will increase dramatically, eliminating any benefit BTC might have been useful for in the past.  Most of the exchanges will likely simply refuse to work with US-based customers and unless customers are willing to break the 'law' by using non-authorized outlets we will see bitcoin ultimately die the slow death or eventually get taken over by the central bankers and hedge fund masters to be used as the underlying replacement to the USD for international trade.  Specifically for oil I'm thinking.

Bitcoin might not be the 'Peoples Currency' for much longer.

[NewLiberty]

I think there is the possibility that this could be the end of the road for cryptocurrencies in the USA, from a practical standpoint.

Why?  It was already the case that Bitcoin exchanges had to implement Know Your Customer (KYC) for USA.. doesn't sound to me like this is saying anything new in that regard.

These new rulings will affect many merchants also.

I suspect it will take a few days before the realizations sinks in as to what has happened.

Merchants are exempt according to Lawsky. A merchant isn't the same as a payment processor. Why can't the merchants handle the bitcoin and immediately send them to coinbase or bitpay for them to instantly convert it?

lmao!  oh well hell, if he said that!  Don't get it confused, just because Lawsky say's something today doesn't mean it can't be squashed the very next week with additional BS rules and regulations.

What's this going to do to BTC in the states?  My opinion is fee's for places like Coinbase, etc. will increase dramatically, eliminating any benefit BTC might have been useful for in the past.  Most of the exchanges will likely simply refuse to work with US-based customers and unless customers are willing to break the 'law' by using non-authorized outlets we will see bitcoin ultimately die the slow death or eventually get taken over by the central bankers and hedge fund masters to be used as the underlying replacement to the USD for international trade.  Specifically for oil I'm thinking.

Bitcoin might not be the 'Peoples Currency' for much longer.

Fees will rise.  Competition will fall or exit.  Less competition, less innovation, more centralization.
This is the job of regulation.
If you've ever gone diving, you know the value of a regulator to control the flow from a high pressure tank into your soft pink lungs.  Regulators have a place, but when it doesn't even let you breath air it has failed.

That this is done in the name of "consumer protection" is the greatest tragedy.  It leaves the consumer more naked and helpless than ever and with fewer choices.

The regulation runs counter to its own claimed policy goals.  It is killing its diver.  It has failed.