I guess it is the fear of getting robbed, beaten and shot in one night?
When the money is involved directly, it gets dangerous dramatically. You can sell so many stuff without a problem but selling money a bit different.
I don't even mentioned that the government will not like you. To open a local cash exchange, you need to get licences. You may not take much attention at first but when your business is big enough, the government will want its piece, or else jail time.
Topic: What stops you from opening a local bitcoin exchange business? - page 4. (Read 1880 times)
For instance in my country localbitcoins is blocked.
There are ways to circumvent this blockade, but it's not really worth it when you're not living in one of the major cities, or at least close to it.Not enough demand!
Furthermore it can be risky as you never know who you are dealing with. I never had problems so far, but I was always buyer side so far and my seller has built up very good repuation over the years he is doing it now.
And of course you need some starting capital, for instance to get the coins cheaper on the exchanges and sell them for a few +% person to person.
There are ways to circumvent this blockade, but it's not really worth it when you're not living in one of the major cities, or at least close to it.Not enough demand!
Furthermore it can be risky as you never know who you are dealing with. I never had problems so far, but I was always buyer side so far and my seller has built up very good repuation over the years he is doing it now.
And of course you need some starting capital, for instance to get the coins cheaper on the exchanges and sell them for a few +% person to person.
You need a huge capital, plus good reputation and the hassles of law enforcement agencies. It's not a peice of 🎂 that you think and open up. You need to plan a he'll lot. Pay lawyers fees, set up charges, secure platforms. It's very risky and a pain job. Are you really sure you wish to do it?
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.
the first thing that a local bitcoin exchange business needs is customers. and as long as i can't find enough people around me who know about bitcoin i don't think that is such a good idea.
apart from that, if there is enough people interested in using such service and i can get over the regulations and also the initial capital needed for starting it, i don't really see any other obstacle and i will surely do it.
So many things:
Those are the biggest reasons in order from biggest to smallest but they're all very important.
- Regulations
- Upfront cost
- Operating capital
- Risk of theft
- Barely anyone in my area uses bitcoins so I would be making nothing or next to nothing
Those are the biggest reasons in order from biggest to smallest but they're all very important.
You need money for that, except that security is one of the biggest problems. I don't think I'm smart enough for this, some better hacker would stole all I have, and what other people have.
This is not for everyone, people will lose more money in trying then profit from this business.
I will not try ever to run exchange site, or any site. Even if I do I will hire people to do things there.
This is not for everyone, people will lose more money in trying then profit from this business.
I will not try ever to run exchange site, or any site. Even if I do I will hire people to do things there.
Besides security and local laws,I thing it also requires good investment.I dont know hoe much but I think minimum you need around 10 BTV to set up an exchange
it is not an easy job to do. the security is the biggest one but it is just the start.
there are also legal issues that you have to think about like AML and all those acronyms for money laundering in businesses. also tax laws.
and after all this you should know how to advertise your business and make it profitable. in many countries just making the local exchange doesn't mean success!
there are also legal issues that you have to think about like AML and all those acronyms for money laundering in businesses. also tax laws.
and after all this you should know how to advertise your business and make it profitable. in many countries just making the local exchange doesn't mean success!
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.
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