The banks don't want to have to deal with US govt
You'd be suprised.
Topic: Why is Bitstamp different from Gox in regard to USD transfers and regulators? (Read 1211 times)
September 02, 2013, 12:04:15 PM
You'd be suprised.
September 02, 2013, 11:50:39 AM
... or only a matter of time before they simply choose to not do business with US citizens, residents or other US persons, as many financial services firms around the world are doing. This is quite unrelated to Bitcoin I must add.
This very common and I actually find it a bit odd that Bitstamp wants anything to do with people who are citizens of or just in the United States of Fascism.
My bank does not want anything to do with customers from the USSA, and I have yet to see a local bank who does not specifically refuse customers from that country. It's interesting that there is no such policy against customers from Russia, China or other more free countries - it's just the US and their citizens that pose a problem.
Actually its not the citizens causing the problem, its the wacky US goverments anti money laundering regime.
The banks don't want to have to deal with US govt, so they chose not to deal with US citizens.
September 01, 2013, 09:16:29 AM
ATM, Bitstamp doesn't have to start the conversation with:
Q: Why are you interested in our services?
A: Well, the funds in our last banks were confiscated, and the DHS seized our Dwolla account, too. We have months of backlog and are operating at a loss in the US. We entered an agreement with another company to have them take over our US operations, but we're now the defendant in a $75m (or whatever the number is) lawsuit with them over breach of contract.
Q: Why are you interested in our services?
A: Well, the funds in our last banks were confiscated, and the DHS seized our Dwolla account, too. We have months of backlog and are operating at a loss in the US. We entered an agreement with another company to have them take over our US operations, but we're now the defendant in a $75m (or whatever the number is) lawsuit with them over breach of contract.
September 01, 2013, 09:09:42 AM
Bitstamp doesn't lie to regulators about its status as a money transmitting business. Bitstamp doesn't "forget" to update their registration information.
If you are going to work with regulators, it's a good idea not to lie to them.
If you are going to work with regulators, it's a good idea not to lie to them.
Bitstamp hasn't registered with FINCEN. They aren't even trying to become compliant and are therefore attractive to criminals/money launderers. Only a matter of time before the fed takes down bitstamp. Probably btce too.
yup just like Liberty reserve
Company run out of Costa Rica by an ex-US citizen is a lot more within reach than company run by Europeans out of Slovenia. I certainly cannot see anything comparable to the liberty reserve take down. If the US wanted to shut down Bitstamp it would be by applying pressure to the banks Bitstamp use, and thus Bitstamp slowly strangled as they find no banks willing to accept their accounts.
September 01, 2013, 06:22:33 AM
First they are going after the big fish. Then they will go after the small fry like bitstamp.
August 31, 2013, 11:16:16 PM
Bitstamp doesn't lie to regulators about its status as a money transmitting business. Bitstamp doesn't "forget" to update their registration information.
If you are going to work with regulators, it's a good idea not to lie to them.
If you are going to work with regulators, it's a good idea not to lie to them.
Bitstamp hasn't registered with FINCEN. They aren't even trying to become compliant and are therefore attractive to criminals/money launderers. Only a matter of time before the fed takes down bitstamp. Probably btce too.
... or only a matter of time before they simply choose to not do business with US citizens, residents or other US persons, as many financial services firms around the world are doing. This is quite unrelated to Bitcoin I must add.
August 31, 2013, 08:52:47 PM
Again, the question here is - how come Gox is supposedly having problems that Bitstamp is not having?
OK then. How is CampBX functioning at all?
Based in Atlanta, GA and presumably doing business in 50 states...
August 31, 2013, 08:48:02 PM
Bitstamp doesn't lie to regulators about its status as a money transmitting business. Bitstamp doesn't "forget" to update their registration information.
If you are going to work with regulators, it's a good idea not to lie to them.
If you are going to work with regulators, it's a good idea not to lie to them.
Bitstamp hasn't registered with FINCEN. They aren't even trying to become compliant and are therefore attractive to criminals/money launderers. Only a matter of time before the fed takes down bitstamp. Probably btce too.
yup just like Liberty reserve
August 31, 2013, 07:28:23 PM
Bitstamp doesn't lie to regulators about its status as a money transmitting business. Bitstamp doesn't "forget" to update their registration information.
If you are going to work with regulators, it's a good idea not to lie to them.
If you are going to work with regulators, it's a good idea not to lie to them.
Bitstamp hasn't registered with FINCEN. They aren't even trying to become compliant and are therefore attractive to criminals/money launderers. Only a matter of time before the fed takes down bitstamp. Probably btce too.
Again, the question here is - how come Gox is supposedly having problems that Bitstamp is not having?
The "Fed" can't take anything down anyways. Taking down companies is not within its power. Gox is having problems because it deals with USD and wants to do it in a regulated manner, but lies about its own status.
August 31, 2013, 07:25:18 PM
Bitstamp doesn't lie to regulators about its status as a money transmitting business. Bitstamp doesn't "forget" to update their registration information.
If you are going to work with regulators, it's a good idea not to lie to them.
If you are going to work with regulators, it's a good idea not to lie to them.
Bitstamp hasn't registered with FINCEN. They aren't even trying to become compliant and are therefore attractive to criminals/money launderers. Only a matter of time before the fed takes down bitstamp. Probably btce too.
Again, the question here is - how come Gox is supposedly having problems that Bitstamp is not having?
August 31, 2013, 03:47:01 PM
Bitstamp doesn't lie to regulators about its status as a money transmitting business. Bitstamp doesn't "forget" to update their registration information.
If you are going to work with regulators, it's a good idea not to lie to them.
If you are going to work with regulators, it's a good idea not to lie to them.
Bitstamp hasn't registered with FINCEN. They aren't even trying to become compliant and are therefore attractive to criminals/money launderers. Only a matter of time before the fed takes down bitstamp. Probably btce too.
August 31, 2013, 03:33:35 PM
Bitstamp doesn't lie to regulators about its status as a money transmitting business. Bitstamp doesn't "forget" to update their registration information.
They just ignore them altogether.If you are going to work with regulators, it's a good idea not to lie to them.
If you do work with them.And Karpeles didn't lie to a regulator, he lied to a bank.
August 31, 2013, 03:32:17 PM
Bitstamp doesn't lie to regulators about its status as a money transmitting business. Bitstamp doesn't "forget" to update their registration information.
If you are going to work with regulators, it's a good idea not to lie to them.
If you are going to work with regulators, it's a good idea not to lie to them.
August 31, 2013, 03:29:22 PM
They have accounts in Europe : harder to reach.
They're on thin ice too though.
They're on thin ice too though.
August 31, 2013, 03:19:10 PM
Presumably Gox is having serious problems with the US regulators and banks, leading to thus far $5M seized. As a consequence, there are no USD wire transfers coming out of Gox.
Why is it, then, that Bitstamp is at the same time running smoothly its USD-denominated bitcoin exchange, and is able to wire me USD, working with those same US banks?
Either Bitstamp is on thin ice, but has not fallen through yet, or the official Gox story is not true.
Why is it, then, that Bitstamp is at the same time running smoothly its USD-denominated bitcoin exchange, and is able to wire me USD, working with those same US banks?
Either Bitstamp is on thin ice, but has not fallen through yet, or the official Gox story is not true.
Jump to: