it's none of their business where the coins came from. idgaf if it is for laundering purposes or not.
imnsho its a good place to not do business with if they want to be that anal down to the micro bit.
Topic: Anyone Think Bitstamp is Insolvent? Possible BTC Price Drop Incoming? - page 3. (Read 6164 times)
May 25, 2014, 08:59:06 AM
May 25, 2014, 08:54:49 AM
I mostly lurk, rarely post, but as someone who has been involved in the KYC compliance changes for one of the worlds largest financial institutions, I'd just like to say this:
This is quite literally textbook FinCEN foundation, and I would actually take this to be a good sign. It means that Stamp is taking the necessary steps (including a fair bit of 'catch-up') to be in compliance with US money laundering regulations that would place it on the same level of credibility as an international bank. Personally, while it might be a bit of a chore at the outset, I consider this a very good sign long-term.
This is quite literally textbook FinCEN foundation, and I would actually take this to be a good sign. It means that Stamp is taking the necessary steps (including a fair bit of 'catch-up') to be in compliance with US money laundering regulations that would place it on the same level of credibility as an international bank. Personally, while it might be a bit of a chore at the outset, I consider this a very good sign long-term.
May 25, 2014, 07:45:38 AM
I don't think they're insolvent. I do think their practices are totally unacceptable. Once regulated US exchanges open up and Kraken gets some proper momentum they'll be left in the dust where they belong.
May 25, 2014, 03:58:32 AM
This type of account verification is nothing new. It's been in place since September 2013.
That being said, Bitstamp is formally incorporated in the UK, and given the UK's closeness to the US in the context of law enforcement / anti-terrorism is it any wonder that the UK government is (probably) putting pressure on Bitstamp to do a better job at KYC enforcement?
That being said, Bitstamp is formally incorporated in the UK, and given the UK's closeness to the US in the context of law enforcement / anti-terrorism is it any wonder that the UK government is (probably) putting pressure on Bitstamp to do a better job at KYC enforcement?
Accounting for where all your coins came from or having to take a photo with your face + your bank statement + your Passport in hand is excessive IMO. I would never go through all that trouble for any service within the US. Are you sure that account verification is that strict in the UK?
It sounds just like a anti money laundering rules, why would they be insolvent? Due to a hack again? Bitstamp just takes some slice from the fees, they are not giving any kind of interest
May 25, 2014, 03:15:58 AM
This type of account verification is nothing new. It's been in place since September 2013.
That being said, Bitstamp is formally incorporated in the UK, and given the UK's closeness to the US in the context of law enforcement / anti-terrorism is it any wonder that the UK government is (probably) putting pressure on Bitstamp to do a better job at KYC enforcement?
That being said, Bitstamp is formally incorporated in the UK, and given the UK's closeness to the US in the context of law enforcement / anti-terrorism is it any wonder that the UK government is (probably) putting pressure on Bitstamp to do a better job at KYC enforcement?
Accounting for where all your coins came from or having to take a photo with your face + your bank statement + your Passport in hand is excessive IMO. I would never go through all that trouble for any service within the US. Are you sure that account verification is that strict in the UK?
May 25, 2014, 02:21:40 AM
This type of account verification is nothing new. It's been in place since September 2013.
That being said, Bitstamp is formally incorporated in the UK, and given the UK's closeness to the US in the context of law enforcement / anti-terrorism is it any wonder that the UK government is (probably) putting pressure on Bitstamp to do a better job at KYC enforcement?
That being said, Bitstamp is formally incorporated in the UK, and given the UK's closeness to the US in the context of law enforcement / anti-terrorism is it any wonder that the UK government is (probably) putting pressure on Bitstamp to do a better job at KYC enforcement?
Here in the US I've never heard of anyone having to go through and validate every single dollar and where it came from. If you came to me today and asked me to go through my current bank balance (despite how small it is), I still couldn't do that because you get bits and pieces from here and there. It's ridiculous to expect people to keep up with every cent they get, where it came from, when it was spent and what it was spent on.
May 25, 2014, 02:14:56 AM
BitstAmp also has lots of European customers from diff nations
Makes Kyc onerous and complex at scale
Makes Kyc onerous and complex at scale
May 25, 2014, 02:09:46 AM
This type of account verification is nothing new. It's been in place since September 2013.
That being said, Bitstamp is formally incorporated in the UK, and given the UK's closeness to the US in the context of law enforcement / anti-terrorism is it any wonder that the UK government is (probably) putting pressure on Bitstamp to do a better job at KYC enforcement?
That being said, Bitstamp is formally incorporated in the UK, and given the UK's closeness to the US in the context of law enforcement / anti-terrorism is it any wonder that the UK government is (probably) putting pressure on Bitstamp to do a better job at KYC enforcement?
May 25, 2014, 01:58:46 AM
Yeah coinbase is hypotheized to resell/buy off bitstamp and I believe Bitpay uses bitstamp to convert the BTC to fiat for their customers. With that being said they would need to find new exchanges/marketplaces (maybe even create their own for double profit?) in order to continue business as usual.
I don't how how many more insolvent bitcoin exchanges the public will take tbh. I think another big exchange like Bitstamp going down could put bitcoin in a major set back for a long period of time.
I don't how how many more insolvent bitcoin exchanges the public will take tbh. I think another big exchange like Bitstamp going down could put bitcoin in a major set back for a long period of time.
May 25, 2014, 01:27:38 AM
Wow that is worse than a paypal freeze. One of the many reasons I will never do business with bit stamp.
May 25, 2014, 12:25:00 AM
Bitstamp leads the western exchanges, so if any news like that broke, price would definitely go down imo. Dont Bitpay and Coinbase use Bitstamp sometimes? Some merchants too possibly. And I think Bitstamp inherited the "face of bitcoin" role from Gox, so theres that too. But after the darkest day comes the light, LOL.
Yeah, Bitpay and Coinbase both use Bitstamp as one of their exchanges, so it would affect both (presumably) as a result. The price would likely bounce back after a couple months, though, so it could be good for people wanting to buy in cheap.
May 25, 2014, 12:23:46 AM
Bitstamp leads the western exchanges, so if any news like that broke, price would definitely go down imo. Dont Bitpay and Coinbase use Bitstamp sometimes? Some merchants too possibly. And I think Bitstamp inherited the "face of bitcoin" role from Gox, so theres that too. But after the darkest day comes the light, LOL.
May 25, 2014, 12:21:22 AM
May 25, 2014, 12:18:27 AM
Found this today, seems although Bitstamp is making it EXTREMELY difficulty to withdraw both BTC and Fiat currency. Seems like a Mt. Gox 2.0 problem. If they end up being insolvent do you guys think BTC price will increase (due to realized less supply of coins) or go down due to bad media coverage plus people trying to recoup some of their losses?
http://www.reddit.com/r/Bitcoin/comments/26apno/bitstamp_will_not_process_withdrawal_unless_you/
some people may bring about their recent "proof of solvency" of Bitstamp by firestartr.co (whoever the hell that is). It is just a statement though, no blockchain proof. And the PDF is even broken on my PC
https://www.bitstamp.net/s/documents/Firestartr_DD_Letter_for_Bitstamp.pdf
http://www.reddit.com/r/Bitcoin/comments/26apno/bitstamp_will_not_process_withdrawal_unless_you/
Quote
We kindly ask you to send us a high resolution image of both pages of your international passport and answer the following KYC questionnaire: 1. How did you learn about Bitcoin? 2. The purpose of trading on Bitstamp? Please describe in as much detail as possible how you intend to use your trading account. 3. What is the origin of the deposited Bitcoins? If mining, please specify your hardware specifications and submit a receipt or an invoice for your mining equipment. 4. What are your future plans and activities planned on our exchange? 5. Do you plan more withdrawals in the future? 6. Which bank do you intend to use? Please provide the complete address and SWIFT code. 7. Estimated amount that you would be depositing/withdrawing to/from your Bitstamp account per month (in USD and BTC)?
We kindly ask you to submit your answers and documents in a reply to this ticket.
OK fine, here are the details and my passport (already verified with driver's license and had swift code already entered).
They required that I prove where the coins came from that I sold. I provided the receipt from the exchange. Here is what they came back with.
Thank you for your reply.
Please note that the provided information is for only 5 BTC while you have deposited to and sold on Bitstamp more than xxx bitcoins.
We kindly ask you to send us a signed message of your personal, most used wallet so we can establish the veracity of your statements.
We kindly ask you to submit your answers and documents in a reply to this ticket.
OK fine, here are the details and my passport (already verified with driver's license and had swift code already entered).
They required that I prove where the coins came from that I sold. I provided the receipt from the exchange. Here is what they came back with.
Thank you for your reply.
Please note that the provided information is for only 5 BTC while you have deposited to and sold on Bitstamp more than xxx bitcoins.
We kindly ask you to send us a signed message of your personal, most used wallet so we can establish the veracity of your statements.
some people may bring about their recent "proof of solvency" of Bitstamp by firestartr.co (whoever the hell that is). It is just a statement though, no blockchain proof. And the PDF is even broken on my PC
https://www.bitstamp.net/s/documents/Firestartr_DD_Letter_for_Bitstamp.pdf
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