What stops you from opening a local bitcoin exchange business?

Kidmat

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Quote from: ged00u on November 06, 2016, 10:50:36 AM

Quote from: kryptqnick on November 06, 2016, 10:37:32 AM

Well, there is one such place in my city already. And the business is cruel, so I don't want to get in trouble. And there aren't many people using Bitcoin here, so I don't think it is very profitable. Moreover, this will count as illegal business in my country, because Bitcoin is out of the law and you don't pay taxes. Oh, and I guess in my city those who use BTC are mostly drugdealers, so I don't really want to have some common things with them.

I think so too, in my place everything that deals with business doesn't get away from taxes and if it does, it'll be considered illegal so bringing bitcoin which is totally tax-free into business is a risky move. Moreover, the people here seem to have no idea about bitcoin so it's hard to run this business.

We have to pay the taxes. Even if we use the bitcoin, we should still pay the tax to support the society.

fortunecrypto

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Quote from: deezn9 on October 29, 2016, 05:24:36 AM

Besides the security issue of handling lots of money in public what's stopping people who are familiar with bitcoin from opening a 'local bitcoin guy' business charging 10-15% for changing cash into btc? This would be the same service people list on Mycelium Local Trader and localbitcoin.com.

You need a lot fo funds to run this kind of business,not only fund,but also technical knowledge plus you have to be compliant on the country,where you are going to run your business.

ged00u

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Quote from: kryptqnick on November 06, 2016, 10:37:32 AM

Well, there is one such place in my city already. And the business is cruel, so I don't want to get in trouble. And there aren't many people using Bitcoin here, so I don't think it is very profitable. Moreover, this will count as illegal business in my country, because Bitcoin is out of the law and you don't pay taxes. Oh, and I guess in my city those who use BTC are mostly drugdealers, so I don't really want to have some common things with them.

I think so too, in my place everything that deals with business doesn't get away from taxes and if it does, it'll be considered illegal so bringing bitcoin which is totally tax-free into business is a risky move. Moreover, the people here seem to have no idea about bitcoin so it's hard to run this business.

iram1011

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Quote from: deezn9 on October 29, 2016, 05:24:36 AM

Besides the security issue of handling lots of money in public what's stopping people who are familiar with bitcoin from opening a 'local bitcoin guy' business charging 10-15% for changing cash into btc? This would be the same service people list on Mycelium Local Trader and localbitcoin.com.

I think the most issues is related to money laundering. Because for some fiat money you can risk a sue, or bigger problem with justice.
more over it's also risky make an exchange with stranger, you can't know who is your client (maybe a terrorist, criminal)...

kryptqnick

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Well, there is one such place in my city already. And the business is cruel, so I don't want to get in trouble. And there aren't many people using Bitcoin here, so I don't think it is very profitable. Moreover, this will count as illegal business in my country, because Bitcoin is out of the law and you don't pay taxes. Oh, and I guess in my city those who use BTC are mostly drugdealers, so I don't really want to have some common things with them.

Barbut

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Quote from: traderethereum on November 02, 2016, 09:00:33 AM

i think i don't have much bitcoin to start local bitcoin exchange business because as far as i know, its really need much of money and bitcoin because we are giving our services to our friends for first and the order is really need some money and bitcoin. maybe if i have much bitcoin and much money, i will open my local bitcoin exchange business because i see the profit is really good.

Too much money, to many laws, to many licences, yes it does sound like for bitcoin exchange we need a lot of money to pay all that, but my point was that even with money you can`t do it if you don`t know basic things for that business. In case that you don`t have knowledge you will need to hire people to work for you, that is one more expense on already too much expenses. How much money you plan to give to this people that will work for you, that much they will be good. More money you pay better team of experts will you have.
This is not for ordinary people with some extra money, this is for serious investors with many connections and big bank credit.

Pursuer

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Quote from: ObscureBean on November 03, 2016, 02:31:37 AM

Well the Bitcoin community still consists mostly of nerds and typically nerds don't embrace face to face meetings Cheesy

They're more comfortable being anonymous behind the screen of their computers in their bedrooms. Plus it's a bit risky to transact big sums of money with strangers. Still I'm sure we gonna see more of these popping up over the next few years.

well that's just not true.

it may have been true like 5 years ago when nobody knew about bitcoin and only 2 guys were mining bitcoin but these days bitcoin is used in a lot of places as a currency and online payment systems and also it is used by a lot of others as an investment, a way to make some profit or save their money in.

and it would be great if all of these users could have had some means for buying bitcoin "locally" not have to go to a centralized exchange service website outside of their country and buy from them.

ObscureBean

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Well the Bitcoin community still consists mostly of nerds and typically nerds don't embrace face to face meetings Cheesy

They're more comfortable being anonymous behind the screen of their computers in their bedrooms. Plus it's a bit risky to transact big sums of money with strangers. Still I'm sure we gonna see more of these popping up over the next few years.

BitcoinPanther

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Quote from: Rostadom on November 02, 2016, 05:35:56 AM

I think one thing that stops me from being that 'bitcoin exchange guy' is the fact that I want to remain alive. People can easily just set a meetup with you and tell you that he's exchanging all of his coins into fiat. You would have to bring all of those cash then. He can easily set you up and rob you, possibly even kill you. Meeting up with people from the Internet isn't something safe. Simply revealing who you are will open doors for people to go to your place and rob you.

I don't think you have to meet your client in person. If you are a bitcoin exchange guy, am sure you already setup your exchange site. From there they can deposit their bitcoin and you can deposit the cash on their bank. So what is the purpose of you having an exchange site if you go out and trade in person.

iv4n

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I don`t think I have necessary skill to run exchange, I don`t think this is a joke to create and run exchange that will have profit in the end of the month. Except knowledge from economy, I don`t know so much about laws so I would need to pay a lawyer to tell me about laws in my country, I presume that for every country different laws are applied.
To not mention money for beginning, for advertising, for hiring security, and million other things. There is no way I can do this, it`s better for me to do it off the records with people I know, but not so many of them know about btc.

nydiacaskey01

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Aside from what has been said like security, operating expenses and capital, whats stopping me from setting up my own exchange is knowledge on setting up a business like this and courage to jump in this kind of business as there are risks involved. If ever I will dive in this this venture I would need a partner who knows how to run a business like this for starters.

BossMacko

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Having a local bitcoin exchange business is very a profitable and very nice business but what stopping me from opening one? First of all i don't have the fund needed to hire someone to create me this site that can integrate every currency to exchange in Bitcoin , second is you also need fund to make sure to have the best security for that website and you also need to hire debuggers that will detect all the possible bugs that can occur to your system.

Doms

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I haven't really planned on opening my own business that focuses on local bitcoin exchange. First and foremost of the reasons is the fact that I have not enough capital to begin with. Another would be the tedious procedures it would take, as far as my country, to complete requirements in opening up such a business.

jossiel

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There are a lot of things to consider why something is stopping me to open a local bitcoin exchange business.

1. There are already a good exchange here in my country so I am going to have hard time competing with them for I admit they are better than my developments.

2. Budget is really stopping me, I don't have enough budget for building my own local exchange site and no one wants to support my idea.

countryfree

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Well, I've tried to sell some BTC with localbitcoins in 2 different cities. Once in France, once in Spain. I wasn't hungry, I chose to sell only 4% above spot. I didn't got a single request. Not an email. I've also tried many times to explain BTC to people I met in bars, or anywhere. People are interested, but when I propose to sell them some, they say tthey need to think about it. It ain't easy to run a business... I guess that if I were to open a shop, I would sell sodas or anything that people do not think about it.

th3nolo

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Is not easy, to start a local exchange business and it depends in majority of your country.
The biggest problems are money,laws and security. If your exchange gets involved with a security problem or one bank freezes the funds of your exchange this could be a big trouble.

DOGE12321

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There are a number of factors to be considered if opening a Bitcoin exchange business.
1. Security
2. I would also presume that there are some legal ramifications that are in place when opening such business.
3. Customers - There aren't a large number of members in this community. Unless one's area is flourishing with Bitcoin, I don't think that it would be a very good business.
4. I also think that people would opt for Bitcoin ATMs. These machines charge a very small exchange fee.

amacar2

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Business/company require licence from local authority and regarding bitcoin it is hard to get any license to operate service related to bitcoin.

To provide service only via a simple exchange webpage or simple facebook buy/sell group can be profitable as you can always buy/sell for margin, the only thing which stops me starting this way is large amount of local currency and bitcoin in hand to meet the demand. And if there will be no one to sell you in cheaper rate from where you can get bitcoins in market rate as there will be no local exchanger or trading platform.

johnnyyash

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I think this requires enough capital for investment and a secured security....!!!

Milkduds

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The policies that are made today,do not always stand up years from now under a new government.
People seem to forget that public opinions can sway and suddenly bitcoin is the root of all evil,grab a pitchfork and lets go get some bitcoiners! This thought crosses my mind everytime I make a purchase with my debit/credit or even grabbing a book at the library. 1984 scared the crap out of me and its fingerprints are still on me today when I think about big brother.

So stating that I think people putting themselves out there are truly amazing people and I admire their potential sacrifice.
Establishing a local exchange would not be in the cards due to my more laid back vibe as well,rather not deal with the stress of it all.

Topic: What stops you from opening a local bitcoin exchange business? (Read 1886 times)