Re: Bitcoin-Central, first exchange licensed to operate as a bank. This is HUGE
So, to recap:
Ironically, your first act after becoming "licensed" is to make a public announcement insinuating that you are a "bank" and that Bitcoins are regulated and insured. None of which, apparently, is true.
What marvelous value licensing thus brings to the Bitcoin community! The value of marketing bullshit under color of law!
Of course, as demonstrated by this thread, none of this makes the least bit of difference to the uncritical legalists in the Bitcoin community. All you have to do to gain their unwavering trust and support, apparently, is to say magical words like "regulated," "legal," "institution," "funds," and "insured" enough times to cause their higher faculties to shut down due to authoritative goodness overload, and they begin signing up for your service and handing over all their Bitcoins.
Ah well, regardless, good luck in whatever it is you are attempting to accomplish, I suppose. Perhaps it will provide some value to someone.
- Not a bank. Not a PSP. "Partnered with a PSP."
- Bitcoins still not regulated. Services that hold and transmit fiat money for others regulated. Just as before.
- Bitcoins not insured.
- Still supporting US and UK users, only now without any USD/GBP exchange.
Ironically, your first act after becoming "licensed" is to make a public announcement insinuating that you are a "bank" and that Bitcoins are regulated and insured. None of which, apparently, is true.
What marvelous value licensing thus brings to the Bitcoin community! The value of marketing bullshit under color of law!
Of course, as demonstrated by this thread, none of this makes the least bit of difference to the uncritical legalists in the Bitcoin community. All you have to do to gain their unwavering trust and support, apparently, is to say magical words like "regulated," "legal," "institution," "funds," and "insured" enough times to cause their higher faculties to shut down due to authoritative goodness overload, and they begin signing up for your service and handing over all their Bitcoins.
Ah well, regardless, good luck in whatever it is you are attempting to accomplish, I suppose. Perhaps it will provide some value to someone.
Quoted for the vitriol, it's like...on my level. Well done.
The second way is far nastier and more insidious. They are planning to impose a recursive "passthru" 30% withholding tax. That means if you do business with the USA you must follow US law and if you don't, your US assets will be taxed at 30% (essentially bankrupting you or making you uncompetitive). But any business that comes into line because of that must also impose the 30% tax on any other financial institution they deal with, even if that institution does not interact with the US in any way shape or form! Because the financial system is a fully connected graph, this essentially means that US law spreads through it like an infection and eventually every financial institution will be forced to comply or face crippling sanctions from other financial institutions they interact with. This happens even in cases where US law conflicts with local law.
Dave, as you're the one exposed to this stuff, please make super sure you have fully researched this topic. The US will force you to follow its rules whether you like it or not and the French government will not save you - this is not a paranoid hypothetical but a phenomenon that is already happening. Your best bet is to do what all other financial institutions are doing and deny access to "US persons" (citizens, residents and people who have held a green card in the last 10 years, iirc). This doesn't exempt you from FATCA but it minimizes the amount of paperwork and reporting to the IRS you'll have to do.
Dave, as you're the one exposed to this stuff, please make super sure you have fully researched this topic. The US will force you to follow its rules whether you like it or not and the French government will not save you - this is not a paranoid hypothetical but a phenomenon that is already happening. Your best bet is to do what all other financial institutions are doing and deny access to "US persons" (citizens, residents and people who have held a green card in the last 10 years, iirc). This doesn't exempt you from FATCA but it minimizes the amount of paperwork and reporting to the IRS you'll have to do.
Very good points, and a large part of why many people don't want to touch "legitimitizing" BTC with a ten foot pole.
I'm thrilled with this new development in Europe, it's amazing news, and wonderful precedent.
And further shows the center of BTC gravity is EU not US based.
