Topic: Don't let global organisations dominate the UK's Bitcoin market -an open letter (Read 1105 times)

What is problem of the title? Nothing related to the artical. Most of the bank is a big hurdle for the bitcoin start up. They should go to BTC friendly bank to open an account.

use bankster usage :

- build exchange marketing place 1
- build bar marketing 2
- build sandwitch marketing 3

client to buy bitcoin = write wire payment to 2 or 3
2 and 3 do wire payment to 1
1 do invoice to 2 and 3

job done.

Read the article, a good read to go.

Thanks for the share.

If you never handle funds, do you need a bank account?

It might seem impractical, but it should be possible to run the business almost entirely in crypto if you get creative.  Hold funds as crypto and pay wages and divs in crypto (nothing to stop you then cashing out).

For taxes and company expenses that can only be paid in fiat, I wonder if some sort of start-up loan facility would work -- made available by you to the company (on an arm's length basis, of course) whereby the company makes drawings from time to time by directing you to make payments on its behalf, and you are paid back in crypto?

You could even acquire some anon prepay VISA cards to hold company fiat spending money.

I don't think there are any laws that say a business must have a bank account.

it's called localbitcoins

where is the distributed and decentralized currency we have been waiting for

metalair done a big mistake. the bank asked them a trick question. and metalair fell for it.

if metalair instead said that they vet and monitor each transaction/client, then this would have been less of a risk. but instead metalair said their clients do all the swaps and its all decentralized (wording that they are distancing themselves away from metalairs clients)

banks actually prefer to know of someone transferring funds is doing it for certain reasons, prefers to know how many false teeth a client has. banks do not want a business to simply say that they do not know what the funds are being moved for as they dont personally get involved.

like i said it's a trick question. and metalair fell for it. whenever FIAT is involved. the bank account holder cannot plead ignorance. the best defense /strategy is to know the whole life story of every penny

someday there will be a decentralized exchange   .

I just posted this on another thread but it's relevant so what the heck:

What the banks are truly terrified of is money laundering and sanctions. Several major banks have been fined many billions of dollars this year over not doing what they should in this area. As it stands the bitcoin world just isn't up to scratch in complying with these rules. If a bank facilitates it they are liable.

So my guess is that some banks have decided that the risk profile of any bitcoin business, especially ones that provide bitcoin to fiat exchange, are too risky to deal with.

Those that are well backed and have professional staff and controls that are proven to be good enough (maybe coinbase say) will get an exemption.

It seems harsh but honestly it's how the entire financial system deals with any money broking business. I've seen it first hand because I've consulted for companies and banks to help them comply with the rules.

As bitcoin matures and becomes a serious medium for wealth transfer this kind of thing is going to step up. In the big scheme of things it's maybe a good step toward decriminalizing the currency and helping mainstream adoption. But it's a shame if it's shuts down some entrepreneurialism as a result.

MetaLair.org's website has been down for nearly two months, so where have we been? The answer:

trying to open a bank account.

 

Last month we needed to invoice for some work, so we approached a well-known UK bank for an

account, which we will refer to as 'Bank A', who sent their local branch manager round to see us.

He'd seen the mention of Bitcoin on our website and asked us about it, we gave him an overview of

the technology and genuinely extended an offer to help Bank A in understanding Bitcoin and other

cryptocurrencies in more detail if they needed it.

 

There then followed two months of cumbersome paperwork and eventually our branch manager

confirmed we were ready to go to the final stage and he'd contact us once Bank A's AML (anti

money laundering) team had given our application a final review.

 

A week later we received a call from him. As we mention bitcoin and a decentralised exchange on

our website he wanted to give us the opportunity to confirm that we would not be handling money

or cryptocurrency in an exchange capacity.

 

We wrote back confirming that this was indeed the case: the decentralised nature of the exchange

we are designing passes funds directly between users so we never handle any funds ourselves.

We received a call from him a week later saying the AML team had refused our application.

So we took down our website and swapped it for a holding page listing only our consultancy

services, and went to another bank, 'Bank B'.


Read the full open letter at: http://cryptocoinchronicle.com/2014/08/dont-let-global-organisations-dominate-uks-bitcoin-market-open-letter-uk-banks/