Topic: Coinbase Seeks 'Invasive' Details on US Bitcoin Mining Operations - page 2. (Read 2096 times)
April 03, 2015, 01:49:27 PM
I don't see what the big deal is. Seems like they just want to vet the mining companies they do business with. If miners don't like it they're free to do business elsewhere. That's fine with me and I'll continue to use coinbase.
April 03, 2015, 01:29:43 PM
You can make it about me if you like but why don't you read this whole thread before you do. https://bitcointalksearch.org/topic/burtw-arrested-update-charges-dropped-934268
Maybe he was a nice guy (I don't know), but he should've checked the requirements for Money Transmission Business. I'm not going to read all those pages now.
I don't have to trust the government.
Of course you don't have to, but your life will be very sad if you keep assuming the worst.
You just don't get it. I'm not assuming the worst. I'm assuming they are going to do what they are being paid to do. If you don't read that back story then you can't understand how vicious the government can be in the pursuit of justice.
April 03, 2015, 01:18:43 PM
The U.S. government is shutting down localbitcoins with sting operations and now it's demanding U.S. based exchanges find out info on large mining operations. What's the next step, all U.S. ISPs must use promiscuous mode packet sniffers to identify Bitcoin nodes? Give them enough time and America can figure out a way to fuck up a wet dream.
Soon they will tax people on wet dreams as well.
April 03, 2015, 01:15:54 PM
You can make it about me if you like but why don't you read this whole thread before you do. https://bitcointalksearch.org/topic/burtw-arrested-update-charges-dropped-934268
Maybe he was a nice guy (I don't know), but he should've checked the requirements for Money Transmission Business. I'm not going to read all those pages now.
I don't have to trust the government.
Of course you don't have to, but your life will be very sad if you keep assuming the worst.
April 03, 2015, 12:58:36 PM
Dude can't you see the reason for the government wanting to see the equipment. Is not paranoid, it's as plainly visible as the nose on your face.
Many people criticize politicians, but your posts are telling me that you're assuming that your government is always evil - completely ignoring the fact that all of them are humans just like you. That's what paranoia is: trust issues. Of course you don't believe me that you could need help, because you don't trust me either.
Sorry for this off-topic discussion.
You can make it about me if you like but why don't you read this whole thread before you do. https://bitcointalksearch.org/topic/burtw-arrested-update-charges-dropped-934268
I don't have to trust the government. It's their job to catch drug dealers and they pressure people to achieve the end goal.
April 03, 2015, 12:45:42 PM
Dude can't you see the reason for the government wanting to see the equipment. Is not paranoid, it's as plainly visible as the nose on your face.
Many people criticize politicians, but your posts are telling me that you're assuming that your government is always evil - completely ignoring the fact that all of them are humans just like you. That's what paranoia is: trust issues. Of course you don't believe me that you could need help, because you don't trust me either.
Sorry for this off-topic discussion.
April 03, 2015, 12:31:11 PM
QuestionAuthority: http://www.wikihow.com/Deal-With-Your-Paranoia
Dude can't you see the reason for the government wanting to see the equipment. Is not paranoid, it's as plainly visible as the nose on your face.
Let's say one of these mining farms are turning in $2 million dollars a month for exchange to fiat. Coinbase has a reporting requirement so they notify the government. The little poorly paid agent functionary wants to know if they are turning in the proceeds of drug sales to convert or if they actually have the equipment to mine $2 million a month in Bitcoins. He notifies Coinbase to send a letter to them requesting a detailed inventory of equipment to verify the ability to mine that much. Coinbase says, I'm not doing that, that's your job mr. agent. Mr. Agent says, so your tired of having a business license. Ok, I can fix that and remove your license.
If the mining farms are smart and honestly turning in mined Bitcoins they would comply after making Coinbase sign a confidentiality agreement to not make their special mining system public. If they are criminals selling I'll gotten gains they will fight it until guys in blue wind breakers bust down their front door.
April 03, 2015, 12:23:25 PM
Stupid answer!
His posts indicate serious issues. What exactly is stupid about suggesting to seek help?
April 03, 2015, 12:05:24 PM
QuestionAuthority: http://www.wikihow.com/Deal-With-Your-Paranoia
Stupid answer!
April 03, 2015, 12:01:35 PM
QuestionAuthority: http://www.wikihow.com/Deal-With-Your-Paranoia
April 03, 2015, 11:23:28 AM
I am a little older and I remember the days when financial institutions did not care about the source of funds as long as their own interests were adequately protected. Think of Swiss banks up to the 70's or early 80's. There is no reason to shut down a "high risk" customer, such as a drug kingpin, if you were not forced to by the government.
1. Coinbase is a startup - they don't have billions to cover potential losses
2. You had to actually visit the bank - even if you had a numbered bank account your face was filmed every single time - on the internet it's more difficult to know who you are dealing with. Especially in Bitcoin it's important to know about your trading partners.
So you believe the guys at Coinbase got a wild idea to start fucking with their customers and said one day, hey let's make every mining farm customer send us photos of their setup with detailed information or we close their account and never exchange anymore Bitcoin for them?
The government must have demanded the information. Most Bitcoin users I know would never ask for that kind of info and would have told the government to fuck off unless they were threatened. AML/KYC doesn't mean you need your customers cock size. It means you need to have verified their identity.
April 03, 2015, 11:16:52 AM
Well then please enumerate those risks not associated with violating AML/KYC rules that an exchange could face from not knowing it's customers' source of funds.
Fraud / Defaulting. If you know your customer has funds in a high risk business you just shut him down.
"High risk" in whose eyes and by what measures? What a moral quagmire!
Whatever happened to "the customer is always right" as a business mantra? Sellers should have no "shut him down" leverage over buyers in a free market, imho.
Demanding payment before delivery is the time-honoured way to avoid seller risk. Nothing wrong with that, I suggest, especially if the customer can deal with a competitor if he finds the terms too onerous.
April 03, 2015, 10:53:20 AM
I am a little older and I remember the days when financial institutions did not care about the source of funds as long as their own interests were adequately protected. Think of Swiss banks up to the 70's or early 80's. There is no reason to shut down a "high risk" customer, such as a drug kingpin, if you were not forced to by the government.
1. Coinbase is a startup - they don't have billions to cover potential losses
2. You had to actually visit the bank - even if you had a numbered bank account your face was filmed every single time - on the internet it's more difficult to know who you are dealing with. Especially in Bitcoin it's important to know about your trading partners.
April 03, 2015, 10:21:12 AM
Well then please enumerate those risks not associated with violating AML/KYC rules that an exchange could face from not knowing it's customers' source of funds.
Fraud / Defaulting. If you know your customer has funds in a high risk business you just shut him down.
I am a little older and I remember the days when financial institutions did not care about the source of funds as long as their own interests were adequately protected. Think of Swiss banks up to the 70's or early 80's. There is no reason to shut down a "high risk" customer, such as a drug kingpin, if you were not forced to by the government.
April 03, 2015, 10:10:53 AM
Well then please enumerate those risks not associated with violating AML/KYC rules that an exchange could face from not knowing it's customers' source of funds.
Fraud / Defaulting. If you know your customer has funds in a high risk business you just shut him down.
April 03, 2015, 09:58:40 AM
Shocking: A financial business is requesting information about their customers
Like seriously: What do you expect? Even without AML/KYC laws: there's something called financial risk management which involves gathering information about customers and closing accounts of high risk customers.
Like seriously: What do you expect? Even without AML/KYC laws: there's something called financial risk management which involves gathering information about customers and closing accounts of high risk customers.
Well then please enumerate those risks not associated with violating AML/KYC rules that an exchange could face from not knowing it's customers' source of funds. My bank did not even ask those kinds of questions when I opened a business account for a shell LLC that I set up for myself.
April 03, 2015, 09:52:54 AM
The U.S. government is shutting down localbitcoins with sting operations and now it's demanding U.S. based exchanges find out info on large mining operations. What's the next step, all U.S. ISPs must use promiscuous mode packet sniffers to identify Bitcoin nodes? Give them enough time and America can figure out a way to fuck up a wet dream.
You say sting operations, are you implying that local bitcoin trading is unauthorised, at least in the us?
Well they're putting people in prison for it, so yeah, I guess it's unauthorized.
See: https://bitcointalksearch.org/topic/burtw-arrested-update-charges-dropped-934268
And: https://bitcointalksearch.org/topic/krebsonsecurity-florida-targets-high-dollar-bitcoin-exchangers-462846
From what i understand, it only impacts people trading over $5k (money laundering) or deliberately accepting an exchange with groups who will continue to commit crybercrimes. Well, I thought it applied to everyone
April 03, 2015, 09:48:32 AM
Shocking: A financial business is requesting information about their customers
Like seriously: What do you expect? Even without AML/KYC laws: there's something called financial risk management which involves gathering information about customers and closing accounts of high risk customers.
Like seriously: What do you expect? Even without AML/KYC laws: there's something called financial risk management which involves gathering information about customers and closing accounts of high risk customers.
April 03, 2015, 09:25:44 AM
The U.S. government is shutting down localbitcoins with sting operations and now it's demanding U.S. based exchanges find out info on large mining operations. What's the next step, all U.S. ISPs must use promiscuous mode packet sniffers to identify Bitcoin nodes? Give them enough time and America can figure out a way to fuck up a wet dream.
You say sting operations, are you implying that local bitcoin trading is unauthorised, at least in the us?
Well they're putting people in prison for it, so yeah, I guess it's unauthorized.
See: https://bitcointalksearch.org/topic/burtw-arrested-update-charges-dropped-934268
And: https://bitcointalksearch.org/topic/krebsonsecurity-florida-targets-high-dollar-bitcoin-exchangers-462846
April 03, 2015, 09:16:04 AM
The U.S. government is shutting down localbitcoins with sting operations and now it's demanding U.S. based exchanges find out info on large mining operations. What's the next step, all U.S. ISPs must use promiscuous mode packet sniffers to identify Bitcoin nodes? Give them enough time and America can figure out a way to fuck up a wet dream.
You say sting operations, are you implying that local bitcoin trading is unauthorised, at least in the us?
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