Topic: SELF REGULATION IS THE ANSWER (Read 739 times)
Self-regulation would lead to a cartel.
what i found is the more 'trust' someone has via third parties, the more people throw money at them. do not base trust on the words of third parties. research the business yourself and dont turn the business into your long term storage vessel for your funds.
use a service then withdraw. do not allow them to keep funds you do not want to lose, for any long length of period.
the best self regulation is for each person to say. ok this CEO of xyz business, would i personally hand him a suitcase of cash, and if he ran off would i have enough knowledge to personally slap him across the face with a wet fish.
do not rely on 3rd parties to verify a business. do your own due diligence. do your own risk assessments. its your money after all, not anyone elses
use a service then withdraw. do not allow them to keep funds you do not want to lose, for any long length of period.
the best self regulation is for each person to say. ok this CEO of xyz business, would i personally hand him a suitcase of cash, and if he ran off would i have enough knowledge to personally slap him across the face with a wet fish.
do not rely on 3rd parties to verify a business. do your own due diligence. do your own risk assessments. its your money after all, not anyone elses
The point is that confidence and trust of the general public is needed. The general public doesn't want to spend the time to research exchanges. I follow bitcoin, yet I really don't know that much about bitstamp, btce or coinbase. the NASD (now FINRA) was created in the 1930s bc the investing public lost all confidence in the stock market and brokerage firms bc there were so many people getting cheated.
"Using the service and getting the money out" only helps to a degree and doesn't help at all with public confidence. What if someone sent $100,000 or bitcoin to gox right before they canceled all withdrawals.
I think you're missing the big picture. Also, if you wanted to buy bitcoin from an exchange which is not a SRO member, you would be free to do so. What's the problem with allowing the investing public to invest with bitcoin exchanges that do belong to a SRO?
There has been a lot of discussion regarding regulation of bitcoin. There are clearly positives and negatives to such regulation. Here is my suggestion:
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
Corrupcy has no limits... your SRO could become an evil institution the same way happened with mtgox.
We can make an infinite chain of audits, auditors being audited. Would it make corruption hard or just infinite?
just infinite, believe me.
what i found is the more 'trust' someone has via third parties, the more people throw money at them. do not base trust on the words of third parties. research the business yourself and dont turn the business into your long term storage vessel for your funds.
use a service then withdraw. do not allow them to keep funds you do not want to lose, for any long length of period.
the best self regulation is for each person to say. ok this CEO of xyz business, would i personally hand him a suitcase of cash, and if he ran off would i have enough knowledge to personally slap him across the face with a wet fish.
do not rely on 3rd parties to verify a business. do your own due diligence. do your own risk assessments. its your money after all, not anyone elses
use a service then withdraw. do not allow them to keep funds you do not want to lose, for any long length of period.
the best self regulation is for each person to say. ok this CEO of xyz business, would i personally hand him a suitcase of cash, and if he ran off would i have enough knowledge to personally slap him across the face with a wet fish.
do not rely on 3rd parties to verify a business. do your own due diligence. do your own risk assessments. its your money after all, not anyone elses
Getting rid of exchanges is the answer.
Trade your damn BTC for goods and services...
Trade your damn BTC for goods and services...
Exchanges are a necessary part of the stock market and the bitcoin market. Believe it or not, most people don't want to buy their bitcoin from a dude at the bread company. Nor do they want to exchange their bitcoin for fiat with this same dude.
There has been a lot of discussion regarding regulation of bitcoin. There are clearly positives and negatives to such regulation. Here is my suggestion:
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
Corrupcy has no limits... your SRO could become an evil institution the same way happened with mtgox.
We can make an infinite chain of audits, auditors being audited. Would it make corruption hard or just infinite?
There has been a lot of discussion regarding regulation of bitcoin. There are clearly positives and negatives to such regulation. Here is my suggestion:
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
..................... coin validation LLC .............
its been talked about before (just ignore the FUD where people thought it was to verify users. the truth was it was a voluntary service for businesses/services)
Getting rid of exchanges is the answer.
Trade your damn BTC for goods and services...
Trade your damn BTC for goods and services...
There has been a lot of discussion regarding regulation of bitcoin. There are clearly positives and negatives to such regulation. Here is my suggestion:
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
Corrupcy has no limits... your SRO could become an evil institution the same way happened with mtgox.
There has been a lot of discussion regarding regulation of bitcoin. There are clearly positives and negatives to such regulation. Here is my suggestion:
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
That the bitcoin exchanges create a self-regulatory organization (commonly referred to as a SRO) to which the bitcoin exchanges could VOLUNTARILY join.
An example of this is brokerage firms. Virtually all brokerage firms belong to a SRO known as FINRA (the financial industry regulatory authority). It is not a governmental entity. This SRO has rules which the brokerage firms must comply with, including being subject to audits, inspections, even fines for non-compliance with the SRO rules. The public feels safer investing with FINRA member brokerage firms bc they know that someone is overseeing the firm, and making sure that the firm is acting appropriately.
The same idea would work great with bitcoin. Bitcoin exchange members would pay a membership fee to join. The SRO would establish internal rules about how exchanges must operate (accounting, audits, etc). The SRO would have a board and staff to conduct these audits and oversee the operation of the exchange. An exchange would not be required to join the SRO, but then it would likely not have the credibility of those that did.
Not only would this give great comfort to the investing public that situations like gox would be much less likely to occur, but it would keep regulations out of the hands of governments. (we all know that people getting defrauded equals more gov regulations, many of which will be broad and overbearing, which will hinder bitcoin's adoption).
The reason that brokerage firms created FINRA was so that the investing public would have greater confidence in entrusting their hard earned money with these entities.
All we need is for knowledgable people (maybe the bitcoin foundation) to create the SRO, draft the membership exchange rules, etc. FINRA's membership agreement with its member brokerage firms would probably be a good template to start with since there are so many similarities with brokerage firms (especially clearing firms) and bitcoin exchanges.
Doesn't this seem like a no-brainer?
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