In December I gave a presentation called "Bitcoin's Silent Killer: Surety Bonds" at the Inside Bitcoins Las Vegas conference. I've been surprised to see that the topic of surety bonds is not talked about more often. A Bitcoin exchange can't get a money transmitter license without securing the required bond. I've spoken to a number of highly regarded attorneys working in the digital currency space that don't even understand the underwriting process.
And all this talk about moving Bitcoin businesses outside the US to skirt US regulations is a joke. If your customers reside in the US, then it doesn't matter where you're located, you better be prepared to comply with US regulations. You can have Coinbase sized funding and still not get bonded if you're operating a foreign MSB.
Although I've created a bonding solution for Bitcoin money transmitters, I can tell you that if you're going to have US customers, you better strap in and hold on tight because it's going to be a wild ride to get licensed.
www.msbtalk.com is where I write about the topic.
Brian Nelson
The problem is that many companies are just choosing to ignore U.S. regulations entirely. "I'll NEVER get shut down. That only happens to other companies."And all this talk about moving Bitcoin businesses outside the US to skirt US regulations is a joke. If your customers reside in the US, then it doesn't matter where you're located, you better be prepared to comply with US regulations. You can have Coinbase sized funding and still not get bonded if you're operating a foreign MSB.
Although I've created a bonding solution for Bitcoin money transmitters, I can tell you that if you're going to have US customers, you better strap in and hold on tight because it's going to be a wild ride to get licensed.
www.msbtalk.com is where I write about the topic.
Brian Nelson
(I attended your presentation, by the way. It was very informative.)