Why do the people still use unlicensed exchangers like Kraken, Xapo, BTC-e, Okcoin, BTC China, Bitfinex and many others? All of them are out law and they can be closed anytime and your money lost...
This is only the most recent example but there are so many like: http://www.coindesk.com/men-plead-guilty-running-unlicensed-bitcoin-exchange/
This is only the most recent example but there are so many like: http://www.coindesk.com/men-plead-guilty-running-unlicensed-bitcoin-exchange/
First of all, the article is about two individuals who are light weights ($10k in undeclared cash over 3 years).
These two people most likely used something like Localbitcoins to facilitate their trades,
and if that is true, then this story is not comparable to the above listed "unlicensed exchangers"
who are doing $100k+ in transactions/profits/fees per day within their own dedicated site.
Second, the term "unlicensed exchange" only applies in jurisdictions in which there are regulations.
Those jurisdictions are actually very few and being licensed or not does not assure your bitcoins are safe.
Third, Mayax is a known supporter of world regulation over bitcoin and constantly argues for principals that are anti-bitcoin.
Let's see :
https://www.cryptocoinsnews.com/coin-mx-bitcoin-exchange-operators-arrested/
http://www.wired.com/2015/01/bitcoin-exchange-operator-sentenced-4-years-silk-road-transactions
These are not from Localbitcoins.
"unlicensed exchange" only applies in jurisdictions in which there are regulations. CORRECT. All the countries have regulations regarding to that. It doesn't have to be something special for Bitcoin. Bitcoin is considered a virtual currency/e-currency and there are strict laws toward to this. Why do you think Circle got license in EU after USA ? Do you think they don't care about the money they spent for that? I assure you it was 500-700K Euros.
Good pocket money, right? But they spent it for a...license. Why? USA, UE(and not only), China/HK, Australia, Canada, etc. All have laws for e-currency exchangers (even BVI, Belize, Bahamas).