Topic: What is the best country to start an exchange in? - page 2. (Read 2970 times)

You're right, I should have added that

This is not true. Ever heard of Eurodollars http://en.wikipedia.org/wiki/Eurodollar for example. What does apply is for an exchange doing business outside the US is, US citizens, which is why many financial institutions simply deal with this regulatory issue by refusing to do business with US citizens even if those individuals reside out side of the US.

What is needed is exchanges in all countries that arbitrages between them. If one exchange goes bust or something else happens, there are still a network of exchanges. You might use your local exchange only to put fiat in/out of the system if you don't trust them too much, and keep your BTC's in your wallet or at another exchange that you trust more.

If you want to trade USD in this exchange it doesn't matter where its physically located you will need to comply with all the same regulations you would have being located in the US.

Start in your own country which for a United States entrepreneur means the United States. Pick a large state say for example California and register there, and federally. Then limit your market to that state. This keeps the initial compliance costs low to start. Then expand first to other states and the internationally as the business grows.

The is in fact the model that Virtex in using very successfully in Canada. They limit their market to Canadian Citizens living in Canada this keeps the cost of regulatory compliance under control.

Russia, North Korea or Nigeria.

Malta. For the win! 

Your best bet would be to convince these guys:

http://www.nasdaq.com/symbol/slv

to create a bitcoin ETF

http://en.wikipedia.org/wiki/Exchange-traded_fund

They are required to purchase the same number of ounces of silver for each share

So if that SLV is trading at 25 dollars,  Silver is roughly worth 25 dollars.

Now if that happened for Bitcoin,  everyone's 401k plan could buy into that,  and force that ETF to buy massive amounts of bitcoins to keep it funded.

That's how you go from $130 to $130,000

Starting an exchange now is like putting a gun to your head.   There are so many regulations designed to keep you out of that type of business.

Are there any countries besides the US, Canada and the UK that have attempted to regulate, or have mentioned, Bitcoin at all?

Anything in Europe? China? Japan?

Japan.

What about Japan? Fast network+lenient government regulation. HK also sounds good but shouldn't say it as if it's a country.

Singapore or HK

What about Tradehill?

anywhere that has cheap international FIAT accepting licences. as it seems the only reason peoples accounts get suspended is that they try to be money transmitters but don't bother buying the licences.

Anywhere you can set up an exchange that can freely accept cash from other countries without difficulty and won't have your bank account suspended.

india

if you want to set up an exchange have these three things

1. get the licences / regulation requirements fr dealing with large amounts of fiat
2 have alot of your own investment in the project EG paying for licences yourself
3. set up the code to be secure and reliable to do many many trades per millisecond.

WHY you may ask?
1. it shows your within the law so fincen cant shut you down for breaking the law
EG don't be dumb working from china accepting dollar for instance, thinking they are immune due to foreign location
EG don't avoid regulation thinking that its regulation that gets your bank closed (actual fact its lack of meeting regulation that gets bank accounts closed)

2. having a lot of money shows that (A)you are good at money management. (B) more positive signs that you probably have experience in Forex markets to know what your doing professionally

3. nice code that works well will get you great reputation as a stable service and many people will trade with you.

for all those guys with just 4BTC to their name thinking that they can be the next billionaires by starting up an exchange. forget about it, do something small scale like trading locally, using OTC.

we don't need run of the mill script kiddies opening 300 clones of MTGOX for just 1BTC worth of labour and domain registration, We need proper forex experienced coders with large investments to do the job right, and then set up multiple branches where each bitcoin/FIAT is based on average incomes of the locations not based purely off of a central exchange price.

Any US based bitcoin business should be viewed with the utmost skepticism. The regulatory environment there is very aggressive and anti-thetical to free enterprise in the financial space.

I wouldn't put any bitcoins into a US-based exchange, not because I do not trust the operators (most who are stand-up guys) but because the govt. there is very unpredictable and capricious. The rules are left purposely vague with all the power resting with the regulators and little to no chance for businesses to recompense for losses in the event of an illegal move by the authorities. Basically, there is no rule of law, just the appearance of one that leaves all the power with the govt. and the encumbent big players (most of whom are technically insolvent and harbouring known criminals). Your bitcoins will more than likely get tied up in endless legal battles with govt attornies who just escalate the legal action using the tax-payer funds after every case they lose until the opposition is financially exhausted.

Singapore? Iceland?

+1

Basing yourself in the U.S. and registering with Fincen just renders you as less stable in our eyes, somewhere in south america would be my choice, I wouldn't however purchase coins from a south american based company unless they had already established a reputation.

Tor.