Topic: Why is UK so slow to jump on this? (Read 7656 times)

Mainstream fx exchangers won't look at a currency which does not have a valid ISO code, which is the main reason I have been pushing XBT for the last 6 months. Fortunately xe.com recognize XBT and Bloomberg are using it internally. Once Bloomberg make their bitcoin page available to all subscribers then there is a real chance that mainstream fx companies will see it as legitimate and start supporting bitcoin.
Max Keiser talked about plans for a London bitcoin exchange, but there doesn't seem to be any news on it.

Also,

 why can't normal regulated currency exchange houses such as FairFX or CurrencyFair just add BTC as a new supported currency?

Transferwise and CurrencyFair both blocked payments to Bitcoin exchanges, they say due to money laundering alarms at the banks they use.
This further confirms that it's not regulation that's the problem.

 I've read differing opinions on the Bitcoin bank block. Some say the banks are abusing the laundering alarms to stifle bitcoin. Others say that genuinely a Bitcoin exchange looks a lot like moneylaundering so it's no wonder this happens.

 However, Transferwise & CurrencyFair are 2 services that take out that factor of looking like moneylaundering out of the question surely and these were shutdown too? If these services really do take the moneylaundering factor out of the detection algorhythms then that's a smoking gun to show it's banks abusing the moneylaundering laws and putting UK business behind in the Bitcoin revolution.

 The most efficient way to buy is currently Bitbargain, a great site but the spread's a bit fierce - so much so it excludes using Bitcoin for most remittance amounts.

Another way to do it could be using a transfer service and taking your banking abroad. A good example of how regulation drives business away. It's pretty easy to open a bank account abroad - any recommendations for a non UK bank somewhere supported by transferwise that isn't technically already dead?

 I'm NOT condoning this... but what happens if you were to have 2 wholly separate businesses with separate bank accounts - one only buys your coins, the other only sells. Balancing between the 2 is an open market. Using company entities is the time honoured way of skirting taxes and regulations, why not here too? How could price fluctuation risk be reduced?

A fully functioning UK exchange is not far away now.

There are a few UK based buyers/sellers on these boards Vinnigar, but do your homework, obviously. Alternatively, are there any Bitcoin MeetUps happening near you?

Can you explain how it is widely accepted?

I am also interested in finding out news of any UK exchanges? Ive been following coindesk now since they first started up and theyr great for up to date news, but im still buying my bitcoins through 'local bitcoins' or 'bittylicious' which is not ideal?

Anyone else get them from anywhere better?

UK has already widely acepted Bitcoin what you talkin about?

Thought this was a perfect reason to bump  ..... http://www.coindesk.com/hmrc-uk-bitcoin-exchanges-dont-have-to-register-under-money-laundering-regulations/

Who would have known 'they' were taking notice of this around 1 year ago. Any significant nodes in Brussels!!?

Cheers monsterer/ItsDom.

@monsterer

Fantastic information, glad I found this thread.

So, it's subject to anti-money laundering laws, but isn't money?

I think the main problem is we are a small island and a small market.
It would be much better for a European Exchange to include the UK.

Just my thoughts through experience.

What Hawker said does make some sense, but Britain isn't the only place with burdensome AML regulations and taxes.

OTC is probably the way forward for now. Bid/ask prices will normally be closer to true "blue market" than the "officially taken" spot price on Gox, which crashes under pressure and is difficult to wire fiat into [at reasonable price and pace].

Think we may have hit the nail on the head there. Whatever route we take, we need to add the standard rip-off Britain premium!

The City of London is a huge financial centre with lots of regulations on money laundering.  For better or worse, this won't change anytime soon.

If you set up an exchange and call Bitcoin a currency, you will need to comply with the rules and probably need to hire compliance staff.  

If you set up an exchange and don't call Bitcoin a currency, then its a commodity and you will have to charge 20% VAT on UK sales.

Both are bad options compared to overseas exchanges which don't have the costs of compliance bureaucrats and don't have to charge VAT.

Australian Question Intonation

http://www.youtube.com/watch?v=OluCvL0lRnI

I thought it might be some Aspergers-something-or-other syndrome!

Accentuated Questioning Intonation perhaps...

Frequently raising one's vocal tone at the end of phrases that aren't questions.

Imagine if your bank came out with a promo, and spokesperson lived in a squat, wears a beanie, speaks with AQI

what is AQI?

For Queen and country.

I love to get an exchange up and running here. The technology is reasonably easy, its the legal junk and resistance of the banks.