Topic: I feel it is my duty to warn you all. - page 2. (Read 5313 times)

I cannot post outside this area, but perhaps some of you might benefit from what I have to say.

I work in finance for an international NGO and have been watching this bitcoin saga unfold with some academic curiosity and no small level of entertainment. I have no problems with bitcoin as a concept, and the agencies and governments I work with have little concern aside from its potential use as a medium for money laundering, though even in this respect it is still a very minor one given the tiny size of the bitcoin economy relative to that of other illicit financial activities. On the list of priorities, it isn't. So you all have no need for worry there from what I have heard.

However.

This is a world with laws. The frankly hilarious incompetence with which MtGox has been operating cannot be allowed to continue. Regulation, no matter what some of you seem to think of it, exists for a reason, and it is to prevent things such as this. Had there been accurate reporting, disclosure, meeting of capital requirements, self-regulatory structure and organization, safeguards against market manipulation, and so on, perhaps this all could have been avoided. It is for this reason that I contacted a colleague with the Japanese Financial Services Agency, who will be investigating MtGox for operating in violation of the Financial Instruments and Exchange Law. Their criminal negligence will end up costing many of you money; hopefully my warning here and swift action by the Japanese authorities will minimize that.

Enjoy.

Totally agree. Those compliance costs seems more like a barrier to entry than anything else.

Imagine how many business, in so many different sectors, fail to be created due to these kind of requirements?
These artificially created barriers to entry only serve to benefit those who are already established. It's sad to see so many people doesn't getting it and supporting more of these regulations, and at the same time they blaming free markets for income disparities.

 ... this bitcoin saga ... relative to that of other illicit financial activities ...

This is a world with laws ... cannot be allowed to continue ... Regulation ... reporting ... disclosure ... capital requirements ... structure and organization ... market manipulation, and so on ...

Go to school.  Youtube is not an education.

Years of gradual deregulation and malfeasance. The laws that would have prevented much of the US economic crisis were repealed. Not that there might not have been a different crisis in its place, bright minds can be very creative when finding ways to make money.

Really though, I'm off.

And really, yes, I did speak with the FSA. If Mark has complied with all applicable laws, then everything will be fine. But I assure you, they will be investigating.

I have no financial interest in this game. I just thought I'd let you all know.

Anyhow, nice speaking with you all, but I have things that need my attention.

Sony is not a financial exchange.

But yes, if you think you will convince me that regulation is unnecessary, you are wasting your time. It, even if imperfectly, does ensure a more or less level playing field, a single set of rules, and most importantly accountability when things go awry. Nothing against bitcoin, knock yourselves out. I honestly do believe it will survive, just with different markets.

This was an area of some discussion. However, there are several sections that may apply. I'm sure that the lawyers will be sorting much of this out for years (in general, not specific to this case), but the "low hanging fruit" here seems to be dealing in deposits in a foreign currency for investment purposes that may lose value owing to fluctuations in traditional forex markets, even though in this case they were unlikely to be converted into yen.

I cannot post outside this area, but perhaps some of you might benefit from what I have to say.

I work in finance for an international NGO and have been watching this bitcoin saga unfold with some academic curiosity and no small level of entertainment. I have no problems with bitcoin as a concept, and the agencies and governments I work with have little concern aside from its potential use as a medium for money laundering, though even in this respect it is still a very minor one given the tiny size of the bitcoin economy relative to that of other illicit financial activities. On the list of priorities, it isn't. So you all have no need for worry there from what I have heard.

However.

This is a world with laws. The frankly hilarious incompetence with which MtGox has been operating cannot be allowed to continue. Regulation, no matter what some of you seem to think of it, exists for a reason, and it is to prevent things such as this. Had there been accurate reporting, disclosure, meeting of capital requirements, self-regulatory structure and organization, safeguards against market manipulation, and so on, perhaps this all could have been avoided. It is for this reason that I contacted a colleague with the Japanese Financial Services Agency, who will be investigating MtGox for operating in violation of the Financial Instruments and Exchange Law. Their criminal negligence will end up costing many of you money; hopefully my warning here and swift action by the Japanese authorities will minimize that.

Enjoy.

I cannot post outside this area, but perhaps some of you might benefit from what I have to say.

I work in finance for an international NGO and have been watching this bitcoin saga unfold with some academic curiosity and no small level of entertainment. I have no problems with bitcoin as a concept, and the agencies and governments I work with have little concern aside from its potential use as a medium for money laundering, though even in this respect it is still a very minor one given the tiny size of the bitcoin economy relative to that of other illicit financial activities. On the list of priorities, it isn't. So you all have no need for worry there from what I have heard.

However.

This is a world with laws. The frankly hilarious incompetence with which MtGox has been operating cannot be allowed to continue. Regulation, no matter what some of you seem to think of it, exists for a reason, and it is to prevent things such as this. Had there been accurate reporting, disclosure, meeting of capital requirements, self-regulatory structure and organization, safeguards against market manipulation, and so on, perhaps this all could have been avoided. It is for this reason that I contacted a colleague with the Japanese Financial Services Agency, who will be investigating MtGox for operating in violation of the Financial Instruments and Exchange Law. Their criminal negligence will end up costing many of you money; hopefully my warning here and swift action by the Japanese authorities will minimize that.

Enjoy.

What are you talking about?  If people want to use the argument "they'll be more secure now they've been hacked" that is their choice, not yours.  If you think Mt.Gox is insecure, excellent, move elsewhere.  Tradehill has seen a huge boost in volume since the Mt.Gox hack.  That is the market regulating exactly as I said it would.

I suspect there is still a market opening for an exchange that actively promotes its security.  When that appears, we'll see more self-regulation of the market going on.

*snort* We've seen how well that works. Mt Gox has been massively, spectacularly negligent about security on multiple occasions, people appear to have lost money as a result, and look how much the market's actually punished them: it hasn't. Why not? Because no-one actually has access to the information required to tell for sure how secure Mt Gox actually is right now, so they end up making judgements based on gut feelings and justify them with arguments like "because Mt Gox has gotten hacked that means they're going to be more secure than exchanges that haven't been hacked repeatedly". This is actually a fairly well known problem with the free market and computer security issues.