Topic: REGULATION: Allow me to give you an Idea of What Is at Stake/a Day in the life - page 3. (Read 2519 times)

Interesting how replies so far boiled down to TLDR

LOL how can you argue against any regulation if you are too lazy to read the fine print? I'd say those kinds of people deserve to be regulated.

I would like to point out that these rules (assuming they are all accurate) vary depending on what type of financial services the business is providing. For example, an investment advisory firm most likely does not spend millions on compliance (magnitudes less in most cases) nor are the rules as strict.

so what's better?

having the government come in and steal $5 million from you?

that happened here before a new venture even got off the ground.

what you are advocating is completely fucking unrealistic.



ask gox and coinbase how they feel about regulation.

Signing. I didn't realize how much red tape regulation involved

I didn't read everything but I get the point. Too much regulation is never good.

With that said,  trying to compare it to the regulation of the finincal industry might fall on deaf ears. Even with all the regulation the finincal industry has they've still found a way to game the system and make insane profits at the expense of others. Regulation didn't stop them 

When people ask for Bitcoin to be regulated the way other financial services are, they are typically people who have little idea what that actually means or would mean to them.

I’ve actually operated under those regulations for many years – let me give you an example using what I know best: the world of stockbrokers/ financial and investment advisors such as those who work for major brokerage firms. (I was a FINRA General Securities Principal / Supervisor and Registered Rep for about 18 years – this group covers all stockbrokers and financial advisors at major investment firms)

These examples are standard in this world:

EVERY piece of correspondence including email and hard copy mail MUST be approved by a General Securities Principal before being sent - “Nice having lunch Jim, look forward to discussing your IRA”

Certain written materials, such as brochures, articles web pages or blog pages ALSO have to be approved by a Compliance officer

In some cases these materials have to ALSO be approved by the regulators

Any article, magazine or link sent must be approved (and usually will not be)
   
Licensed Registered Representatives must report the use of ALL outside personal email addresses and social media - if you do use social media, a compliance officer from your firm WILL review your posts for ANYTHING remotely related to investments or the economy -- some firms disallow all social media entirely even for personal use - your work email will be even more closely monitored

Any public speaking event must be approved ahead of time and all content, PowerPoint slides, invitations and a script must be approved

Registered Representatives must regularly be fingerprinted, take tests and engage in continuing education

ALL activities done by a rep in his/ her personal time must be approved: this includes sitting on non-profit board seats and clearly anything related to business such as being a minor partner in a coffee house or owning income real estate – anything more complex than this is most certain to be disapproved and not allowed by the firm

If a client you have moves out of state and you speak to him and are not licensed in that state, you have broken the law

Registered Representatives are required to get updated proof of ID and account information from every client on a regular basis even if they have known the client for years

If an assistant who is not licensed answers a phone and a client says to sell a mutual fund the assistant cannot accept that order

All of your email is saved and reviewed by the firm – they will read it
   
Registered Representatives must be fingerprinted, have a background check and report annually at a compliance review which can take a couple of days on all facets of their life and business – even something as simple as renegotiating a personal loan is considered material and failure to report it can result in serious action
   
You are not allowed to donate to any politician, PAC or political cause unless you file a form explaining the donation
   
There are typically multiple authorities governing the actions of Registered Representatives this includes the DOL (for pension and 401k plans) the CFTC (for commodities) FINRA (formerly known as NASD), the exchanges, the SEC, the IRS in some cases and the State Securities Regulators in every state --- if the rep works at a bank they ALSO have FDIC, the Fed Reserve System and many other banking regulators – if a rep works with something like annuities, they ALSO need an insurance license and are governed by more regulations and the insurance commissioner
   
I have barely scratched the surface on all the other technical requirements and rules governing underwriting, trading etc.

So lets just pretend that Bitcoin is regulated the way FINRA financial services are:

    It would be nearly impossible for any employed Bitcoin professional to comment on this forum legally

    Permission would be needed before you spoke at or even attended any conference

    You would need to submit everything you say or write to a compliance department for approval

    You would need to have all your emails monitored and report even social media connections and email address

    You’d have to check that you are properly registered in a state before speaking to a client there Etc. etc. etc.

Compliance costs total millions of dollars annually even for relatively small firms. This is why we see very few brokerage and almost no banking start-ups.

I could go on and on.

Next time you hear someone say “we need more regulation in order to help this space mature” take what they say with skepticism, especially if they have never actually lived and worked under such regulations.

Please join the Bitcoin Financial Association (for FREE for BitcoinTalk members using coupon code BITTALK)

bitcoinfinancialassociation.org

Also, please sign our open letter to finance regulator Ben Lawsky of New York (anyone can sign regardless of location or if you are a member or not)

EDIT: I forgot one of my favorites: due to concerns about protecting the elderly, you are forbidden from using the words "senior", "senior citizen" or "elder" in marketing material and marketing directed at seniors such as seminars held at senior community centers are a big no no

EDIT 2:  this was cross posted on Reddit-  a few mentioned that the comparison is different because this is securities law not Bitcoin --- although they may or may not (probably wont) classify Bitcoin as a security and make it subject to FINRA ---  I believe this is EXACTLY the TYPE of regulation some are seeking -  there are people who WANT Bitcoin to be regulated like brokers or banks (who have even MORE regs than brokers)