Topic: Why doesnt someone make a cash only exchange? - page 2. (Read 4804 times)

Perhaps this might be a good idea to pass on to entreprenerial shops on indian reservations that sell cigarettes without the usual tax.  They can also buy and sell bitcoin for USD maybe?

All the posts about Bitcoin ATMs and localbitcoins.com are missing the point - an exchange.  The problem being considered is not "how to purchase Bitcoin with fiat."  The problem is "how to facilitate cash deposit and withdrawal on an exchange."  These are two different problems.

The cash only Bitcoin exchange idea makes my heart leap for joy, but I don't think it could work with current laws.

Rabbit, you educate me every day.  I'd never heard of Hawala.

It sounds like a dream come true.  I know the government would make it impossible because they feel the urge to look into all financial transactions.  In real life we call this busybodyness and let our neighbors know that they aren't welcome to pry that closely, but when people win popularity contests they feel it gives them the right to do this kind of thing and to even prevent some transactions - and to punish you if you don't comply.

Another thing I would like to see is a precious metals exchange.  This could operate a little bit like those "cash for gold" places that sprung up the last five years.  You send in your gold and silver jewelry or junk or whatever and receive credit on the exchange (minus an appraisal fee and other fees, most likely).  The exchange facilitates trading between grams of gold, grams of silver, and units of cryptocurrency.  When you want to withdraw gold or silver the exchange would probably permit doing so in defined units such as nationally minted bullion coins or silver rounds.  Again, likely minus a fee for shipping, insurance, security, etc.

Somebody please make this happen!

Sometimes I want to cry thinking of how great the world would be if all of this could be done and how it isn't likely to happen anytime soon and I may not live to see it.

I know where they were made, but they announced they would actually place in at least 2 US cities very soon ........ can't find the article now though.

One of the first ATMs was made in the USA, but first used in Canada because of the regulatory issues in the USA.

Perhaps the OP had never heard of localbitcoins.com

I believe there are bitcoin ATM machines planned for at least two cities in America soon. I might be wrong.

Yes, I don't understand why everyday someone comes up with a proposal for some BTC-cash exchange mechanism that has already been (more or less) solved by localbitcoins.com.

Why the resistance to using localbitcoins?

Well, besides the fact that you have basically described the Hawala system, which may or may not be the funder of global terrorism (I mean, what good idea ISNT funding global terrorism in the eyes of the government these days), you are also kind of describing Me, You, Email, a bag of cash and starbucks.

Or localbitcoins.com :-)

I agree. Money is money whatever form it is in. Same rules and regulations apply. Money laundering didn't start with wire transfers you know, it started with cold hard cash.

You are pretty much totally wrong about all of this.  FinCen would come down hard on you if you tried this.

If you could do more with Bitcoins, retail outlets like "payday loan" and "we buy gold" businesses might also buy and sell them.

The volatility of Bitcoins is so high, though, that a business like that can't afford to hold Bitcoins for more than a few minutes. Currency exchange shops have the same problem, but unless a currency is in severe turmoil, cashing out once a day is usually enough.

A money changer deals with currencies. Bitcoin is not a currency in virtually every country on the planet at the moment. That's why money changers can't "do the same" with bitcoin.

and dont forget free leather suit cases for cash withdrawals of >250,000

something tells me this idea is totally legally legit but if you actually tried to do it you would find yourself going from zero to boot on your face in about 12 seconds.

When I exchange money at a money changer counter, I am not asked for ID, so why can't money changers do the same with bitcoin?

In a country where bitcoin is not considered a currency, and where there are no regulations requiring ordinary businesses to obtain ID of customers who pay via bank deposit or other indirect means, then deposits can be anonymous because AML / KYC regulations might not apply. I'm not sure about that but I'm looking into it.

Forex shops have licenses and deal with legal currencies. Bitcoin is not a legal currency in the US

I really like the idea though, weapons check service on the way in, cashier in the booth with bars, couple guys with H&K MP5s hanging out in the corner...

"Yes sir, that does count as $100,000, would you like that all in BTC today or credit on the exchange?  Oh, and before I forget, this month we are giving out a free Trezor for each deposit over $25,000"

Local money transmitters are an ideal candidate. The problem is they would worry about banks closing down their accounts.

Local transmitters are already under tight scrutiny by their banks as the banks just don't want anything to do with bitcoin because they are concerned they may end up getting fined and criminal charges.

A clear mandate from governments that bitcoin is ok to trade with and there are thousands of options from existing money transmitters, pay-day-loan operators, to ATMs, to retail shops.

As I understand it, any business having anything to do with exchanging BTC for USD would be considered a "money transmitter," so they'd have to register with FINCEN. I'm not sure that this is the killer though. The killer seems to be that you'd also have to register in every state (that your customers would come from). So it seems you could open up a *local* Bitcoin-for-Cash exchange pretty much anywhere as long as you register with FINCEN and your state (and as long as you don't take or send money to another state).

I just read that SC and NM do not require anything. Other states may require you to post a rather large bond.

So the local cash business actually seems do-able in many places even with the regulatory requirements.