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.
USA, UE(and not only), China, Australia, Canada, etc. All have laws for e-currency exchangers.
Both links you provided do not argue what was your original argument.
Both of those links include willful conspiracy to syndicate criminal activity or willful conspiracy toward drug/weapon sales.
This is like apples to oranges. Because an exchange is licensed or not, does not prevent this from happening.
Please provide links to all laws and regulations that you are relying upon for each country you have listed.
Are you aware that in the United States, it is each state's right to self define money transmission,
and as such, some of those States have determined that bitcoin is not money?