Does anyone know precisely how much it would cost to become a licensed exchange in the UK? The max fees the former FSA charged seemed to be on the order of 25k but that was for "complex cases". If your case wasn't deemed "complex" it'd be lower.
Whilst 25k blown just on a first round of regulatory licensing is a pretty intense cost, stacked up against employee time, office rent and server resources it's probably NOT the largest cost for someone who wants to build a serious exchange. And once you're licensed I would hope that banks give you a much easier time. UK has same-day domestic wires, does it not? So once set up it should be a good place to do trading.
Until then, localbitcoins style agent networks seem like the only way to go. Once you found an agent and have developed a trust relationship, you can use PayPal or the like to buy coins. The trader has to deal with the slow/expensive wires to and from Japan, but they can amortize those costs. I guess as long as the agents aren't doing it as a business then they'd fall below the standard thresholds that trigger licensing requirements.
Topic: Why are UK bitcoin buying options disappearing - page 2. (Read 10998 times)
I have used Transferwise 3 times to move funds to MTGOX: GBP to EUR SEPA. Both Transferwise & MTGOX are totally aware and happy with each other.
I wonder if it matters if your Mt. Gox account is verified or not. So just to clarify you are moving EUR via SEPA to Mt. Gox (bank in Poland). And your account is verified status (AML Level 1)?
- https://support.mtgox.com/entries/20919111-AML-Account-Statuses
bitcoinuk.blogspot.com
^check it
^check it
Seems people have latched onto my Transferwise tip! :-) Glad to see. And also glad to see the way to withdraw also documented - just go direct
Your best bet is to use www.transferwise.com to convert and move GBP to MTGOX SEPA EUR account, and trade in EUR.
I've seen where Mt. Gox only accepts bank transfers if it comes from your own account (and not a commercial account like Transferwise). Are you able to perform this SEPA transfer method from Transferwise to Mt. Gox and they take it?
There is no problem with doing this, as Transferwise are licensed by the FSA and HMRC, so they are seen as part of the financial trail. I have used Transferwise 3 times to move funds to MTGOX: GBP to EUR SEPA. Both Transferwise & MTGOX are totally aware and happy with each other. It's the best way.
I've used localbitcoins.com to buy bitcoins in the UK, via bank transfer/escrow.
UK is a mess, need plenty of expensive money transfer licenses to do anything there hence why no direct cash 3rd party deposits allowed. Fraud is epic, so can't accept any soft bank transfers like CHAPS or FPS which cost 25GBP for just a domestic transfer through barclay's anyways.
Cheapest option (besides localbitcoins) is Money PoloUK it's around $20 to send a $1000USD transfer to your Okpay account, or somebody else's Okpay account depending on exchange rate. Can also withdraw from your Okpay account to Money Polo as well.
I would load up my Okpay account with Money Polo, then withdraw immediately in bitcoins from the Okpay wallet because they offer realtime BTC/USD goxrate, sell those for cash locally or approach some guy who has an existing currency exchange storefront in a major city there, and convince him to accept cash over the counter payments from customers for your bitcoins. He already has a money transfer license so good to go.
If somebody wanted to takeover MtGox GBP like Coinlab did for USD it's wide open if you can figure out something over there that won't be shut down and have a few million or so for setting up corporate Isle of Man banks and employing F/T FCA compliant officers.
Cheapest option (besides localbitcoins) is Money PoloUK it's around $20 to send a $1000USD transfer to your Okpay account, or somebody else's Okpay account depending on exchange rate. Can also withdraw from your Okpay account to Money Polo as well.
I would load up my Okpay account with Money Polo, then withdraw immediately in bitcoins from the Okpay wallet because they offer realtime BTC/USD goxrate, sell those for cash locally or approach some guy who has an existing currency exchange storefront in a major city there, and convince him to accept cash over the counter payments from customers for your bitcoins. He already has a money transfer license so good to go.
If somebody wanted to takeover MtGox GBP like Coinlab did for USD it's wide open if you can figure out something over there that won't be shut down and have a few million or so for setting up corporate Isle of Man banks and employing F/T FCA compliant officers.
Your best bet is to use www.transferwise.com to convert and move GBP to MTGOX SEPA EUR account, and trade in EUR.
I've seen where Mt. Gox only accepts bank transfers if it comes from your own account (and not a commercial account like Transferwise). Are you able to perform this SEPA transfer method from Transferwise to Mt. Gox and they take it? With SEPA transfer to BITSTAMP I've not read about anyone claiming the same restriction.
Which exchanges allow me to transfer funds from my TransferWise account?
- http://bitcoin.stackexchange.com/questions/8149
Also, other methods include:
Bitbargain.co.uk has a few methods:
- https://bitbargain.co.uk
Bitcoin Fridge re-opens on April 6th:
- http://www.BitcoinFridge.co.uk
can we still wire USD to gox directly?
I'll be wading in a selling my BTC for GBP soon on localbitcoin - London area!
The big boys running "RipOff Britain" are throwing their toys out the pram - GOOD.
There will always be options. Thank you to all who have posted alternatives above, very helpful.
There will always be options. Thank you to all who have posted alternatives above, very helpful.
Back to the point though, why are exchanger UK accounts being shut down? Why is it so hard/expensive to get bitcoin in UK when it has a relatively higher adoption rate than some other countries?
I think it is safe to assume no banks in the UK will work with any Bitcoin exchanges. Any agreements to do so have a half-life measured in weeks.
Your best bet is to use www.transferwise.com to convert and move GBP to MTGOX SEPA EUR account, and trade in EUR.
I've seen where Mt. Gox only accepts bank transfers if it comes from your own account (and not a commercial account like Transferwise). Are you able to perform this SEPA transfer method from Transferwise to Mt. Gox and they take it? With SEPA transfer to BITSTAMP I've not read about anyone claiming the same restriction.
Which exchanges allow me to transfer funds from my TransferWise account?
- http://bitcoin.stackexchange.com/questions/8149
Also, other methods include:
Bitbargain.co.uk has a few methods:
- https://bitbargain.co.uk
Bitcoin Fridge re-opens on April 6th:
- http://www.BitcoinFridge.co.uk
Get verified and send your money to MtGox - bank transfer.. lower fee's - Free in GBP . . only £25 and £11 bank fees..
I'm pretty sure you can't transfer GBP directly to MtGox. They had their Barclay's account disabled since September last year.I'm pretty sure that you have to convert money to EUR or USD before you can transfer to one of MtGox's bank accounts (in Poland or Japan) which adds significant conversion and transfer fees. There is no way to directly send GBP to your MtGox account.
As the UK is such a big financial centre, the UK banks are very, very careful about money laundering and fraud. They have all sort of semi-automatic systems that suspend bank accounts at the merest hint of fraud.
Here's what has set the alarm bells off:
Many domestic bank customers are transferring large sums from their bank accounts to the Bitcoin exchange's accounts. Most domestic customers do not really do any account to account transfers, so this is a big red flag.
Fraudsters gain access to peoples bank accounts with scams and trojans etc., they need to transfer the funds somewhere so they can then extract the money. Often they pay people to use their bank accounts to do this - students etc. But some of them are transferring to the Bitcoin exchange's accounts, converting to Bitcoins and then escaping with those. This is perfect for them.
Once the banks have detected that even just ONE of these scams have been attempted, they will shut down the target bank account and won't even discuss it.
The banks also have multiple suspect accounts that they are watching for money laundering etc., and when they all start transferring to the Bitcoin exchange's accounts, the red flag goes up.
Here's what has set the alarm bells off:
Many domestic bank customers are transferring large sums from their bank accounts to the Bitcoin exchange's accounts. Most domestic customers do not really do any account to account transfers, so this is a big red flag.
Fraudsters gain access to peoples bank accounts with scams and trojans etc., they need to transfer the funds somewhere so they can then extract the money. Often they pay people to use their bank accounts to do this - students etc. But some of them are transferring to the Bitcoin exchange's accounts, converting to Bitcoins and then escaping with those. This is perfect for them.
Once the banks have detected that even just ONE of these scams have been attempted, they will shut down the target bank account and won't even discuss it.
The banks also have multiple suspect accounts that they are watching for money laundering etc., and when they all start transferring to the Bitcoin exchange's accounts, the red flag goes up.
http://www.bitcoinfridge.co.uk/ I'll be back up and running on April 6th, will be looking for lots of buyer and importantly lots of sellers (nudge nudge uk miners) of both btc and LTC 
bitbargain.co.uk are a great fast service that are UK based using the "faster payment" service bank uses or barclays ping it. means there are no bank fee's..
edit
but the sellers will have a +£x price over Gox estimates which which may vary depending on the price of bitcoin, which you will find with any service.
edit
but the sellers will have a +£x price over Gox estimates which which may vary depending on the price of bitcoin, which you will find with any service.
It's all a massive pain in the arse. 
This is not a new thing, see thread: https://bitcointalksearch.org/topic/intersango-hsbc-account-freeze-50056. and thread: https://bitcointalksearch.org/topic/mtgox-temporary-suspension-of-all-gbp-deposits-via-barclays-112673
Basically the monopoly that the big four banks have on the UK make it very hard to take your business elsewhere when you get treated like dirt.
After approximately a century of stagnation, the cartel eventually had to offer a banking licence to a new entrant 'Metro bank'. Both Intersango and Mt.GOX switched accounts until even Metro pulled the plug on them too. thread: https://bitcointalksearch.org/topic/worrying-intersango-status-update-95014
The problem is systemic and may be coming from the regulators through back channels, but no bank has said as much.
Hopefully Bitcoin-Central will have more protection from their European bank connection.
Basically the monopoly that the big four banks have on the UK make it very hard to take your business elsewhere when you get treated like dirt.
After approximately a century of stagnation, the cartel eventually had to offer a banking licence to a new entrant 'Metro bank'. Both Intersango and Mt.GOX switched accounts until even Metro pulled the plug on them too. thread: https://bitcointalksearch.org/topic/worrying-intersango-status-update-95014
The problem is systemic and may be coming from the regulators through back channels, but no bank has said as much.
Hopefully Bitcoin-Central will have more protection from their European bank connection.
Hadn't seen that before previous post. Thanks a lot.
Thanks but I wasn't really asking for alternatives, I wanted to know what was up with the UK bitcoin scene and why easy, low fee exchange options are disappearing instead of increasing as one would expect during this crazy bull run of the last few months.
The problem most of those alternatives (esp those that involve bank wire) is that the point of my using bitcoin in this situation is as an easy & fast way to transfer funds internationally (That's how I sold it to him) so if he has to wire GBP to MtGox then it beats the point, he can just wire to me directly.
Back to the point though, why are exchanger UK accounts being shut down? Why is it so hard/expensive to get bitcoin in UK when it has a relatively higher adoption rate than some other countries?
The problem most of those alternatives (esp those that involve bank wire) is that the point of my using bitcoin in this situation is as an easy & fast way to transfer funds internationally (That's how I sold it to him) so if he has to wire GBP to MtGox then it beats the point, he can just wire to me directly.
Back to the point though, why are exchanger UK accounts being shut down? Why is it so hard/expensive to get bitcoin in UK when it has a relatively higher adoption rate than some other countries?
This is not a new thing, see thread: https://bitcointalksearch.org/topic/intersango-hsbc-account-freeze-50056. and thread: https://bitcointalksearch.org/topic/mtgox-temporary-suspension-of-all-gbp-deposits-via-barclays-112673
Basically the monopoly that the big four banks have on the UK make it very hard to take your business elsewhere when you get treated like dirt.
After approximately a century of stagnation, the cartel eventually had to offer a banking licence to a new entrant 'Metro bank'. Both Intersango and Mt.GOX switched accounts until even Metro pulled the plug on them too. thread: https://bitcointalksearch.org/topic/worrying-intersango-status-update-95014
The problem is systemic and may be coming from the regulators through back channels, but no bank has said as much.
Hopefully Bitcoin-Central will have more protection from their European bank connection.
Basically the monopoly that the big four banks have on the UK make it very hard to take your business elsewhere when you get treated like dirt.
After approximately a century of stagnation, the cartel eventually had to offer a banking licence to a new entrant 'Metro bank'. Both Intersango and Mt.GOX switched accounts until even Metro pulled the plug on them too. thread: https://bitcointalksearch.org/topic/worrying-intersango-status-update-95014
The problem is systemic and may be coming from the regulators through back channels, but no bank has said as much.
Hopefully Bitcoin-Central will have more protection from their European bank connection.
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