This is a world with laws. The frankly hilarious incompetence with which MtGox has been operating cannot be allowed to continue. Regulation, no matter what some of you seem to think of it, exists for a reason, and it is to prevent things such as this. Had there been accurate reporting, disclosure, meeting of capital requirements, self-regulatory structure and organization, safeguards against market manipulation, and so on, perhaps this all could have been avoided.
Regulation in the financial markets are not to 'protect people' anymore than the USA PATRIOT act is to 'stop terrorists'. Financial regulations exist because those in the industry want to make the bar to entry as high as they can in order to discourage competition. It has nothing to do with protecting people.
The Mt. Gox hack was unfortunate and it's something I think the site could have prevented with better security procedures. However, regulating them isn't the answer. What
is the answer is to allow the free market to work. Gox users largely gave them a pass this time. Next time, they won't be so lucky. In a market where there is competition, irresponsible parties don't last very long. The market takes care of them without the need for any regulation.
Personally, I cringe every time I see the discussion of Bitcoin market regulation. This is an
excellent opportunity to demonstrate the unbridled power of the free market. Regulation won't help the market, it will only extend governmental power into yet another area of peoples lives where it doesn't need to be.
Rage