Due to the regulatory environment in certain locales, the new operating entities will require clients to verify the address of their residence before selling Bitcoins.
How you deal with this in a frictionless manner is a pretty important question.
Frictionless is likely impossible, regulators have shut that door. However it has been our goal to make it as "low friction" as possible as we have worked hard to make it as easy as possible. We will allow multiple methods to verify their address. These include linking a verified PayPal account, linking a verified Dwolla account, providing credit card details to perform AVS (won't be charged), and for those who wish to use any online digital method we will offer a mailed verification postcard at no cost. While we would prefer to service all clients and avoid verification we have worked hard to ensure that users will find an option they are comfortable with.
But this means that people from outside the US (with the exception of [blocked locales]) will be able to sell Bitcoins to FC4B?
Yes international clients (other than in restricted locations) will be able to sell Bitcoins. The payment options available will depend on the country of residence. In addition we will also be unable to trade with residents of countries that the US has imposed trade sanctions. We are working with counsel to finalize our requirements but likely if your country is on one of these lists you may be blocked:
http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx We are also obligated to perform OFAC & SDN checks so individuals and companies which are on those lists will be blocked. Generally speaking this should not be an issue for the overwhelming majority of users but I include it in full disclosure.