There is no Fractional Reserve unless they ran off with the BTC, all of the Coin that is being asked to withdraw has been sent into the Exchange so it should be there with no restriction. Only restriction should be on FIAT period.
There absolutely could be a fractional reserve problem. If Cryptsy was using phantom coins to game markets in an effort to try to make money for themselves there could be big problems quickly if there was a "bank run."
Further, there is no transparency at Cryptsy w/r/t the wallets, so who really knows what goes on behind the curtain...
I'm getting back in the game after a week out... and got slammed with the whole "25/100 limits". Only reason for this "increased scrutiny" is a need to reduce withdrawals. Why? Don't know... but the only outcome to this crap is reduced withdrawals.
Luckily I only have <10usd worth of btc on that exchange... and I don't plan on making that number go up... but instead making it go to 0.
NOTE: This guy knows numbers.
And I'll be looking at those numbers in the near future... I really don't see a valid reason for the new non-FIAT tiers as FIAT, in my opinion, is the only monetary/high value product that is currently under the purview of KYC being traded at Cryptsy...
i.e.
https://www.pwc.com/gx/en/financial-services/assets/pwc-kyc-anti-money-laundering-guide-2013.pdf
Go to page 37 for the relevant US mandates as Cryptsy is based in the US.
Very clear that non-FIAT transactions of low value goods (i.e. altcoins) don't apply.
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(a) Banking; (b) Other financial Services; (c) Non financial sector (e.g. casinos, high value goods
etc.)
etc.)
What else is clear... if they decide to state that altcoins are indeed high value assets then there is no "limit" that they can put in place to be outside KYC... See question 8 on page 38.
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Are there minimum transaction thresholds, under which customer due diligence is not required?
If Yes, what are the various thresholds in place?
No - basic due diligence is required for all accounts/customers regardless of transaction amounts.
If Yes, what are the various thresholds in place?
No - basic due diligence is required for all accounts/customers regardless of transaction amounts.
Either way, I believe their claim(s) are fake and also believe that this further shows that Cryptsy is only reducing withdrawals as I previously opined.
