Re: Unlicensed Exchangers

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/

First of all, the article is about two individuals who are light weights ($10k in undeclared cash over 3 years).
...

Hope you didn't get your $10k from "Further, the Lords allegedly failed to report cash receipts in excess of $10,000."
Over 10k simply means that they failed to report transactions over $10k, a failure to comply with AML reporting regulations. On top of running an exchange & pushing Xanax like a bunch of high school kids.

If you accept cash in person, AML in does not apply. AML has to do with bank deposits with a single purchase.

Lol, so that is how you got your "$10k in undeclared cash over 3 years'?
Let me help you out a bit with your interweb lawyerin'.
They pleaded guilty to running an unlicensed exchange. As an exchange, they're obligated to report such transactions. They didn't, so got nailed for that too. That's why the article says "Further, the Lords allegedly failed to report cash receipts in excess of $10,000."