Quote from: mishrahsigni on November 27, 2013, 02:28:05 AM

It seems that only MtGox actually enforces them. Are they now a PSP or bank?

MtGox says the reason they prohibit wallet-to-wallet bitcoin transfers (yes, they are prohibiting for unverified accounts now - even if you put your coins in there long ago) is because of the AML laws... yet, no other wallet site (that I know of or use) has this restriction, as they all allow me to transfer bitcoins to another address without the need to verification.

So, either MtGox is making up it's own AML rules, or none of the other sites, like Blockchain, for example, are following them.

Does any know what the real deal is with these AML laws? it is all kept very secret. In fact, the AML laws require that the exchange NOT notify the users in advance before the exchange put in place any new restrictions or limits...but only AFTER they are in place.

The real question is... where can I read the AML laws, specifically on how they apply to bitcoins? (although I still find it hard to believe they even Do apply for wallet-to-wallet transaction... but that is what I am told by MtGox)

alot of businesses dont know the AML regulations. so sometimes they go overboard whenforming their own business policies and practices.
AML laws are about reducing the risk of money laundering. a sub section of this, which helps prevent criminals get identified is the KYC (know your customer).

AML regulations only apply to the FIAT side legally. the regulations of most countries are roughly $1000 in a short period of time being deposited or withdrawn or $10k a year, giving businesses the abilitiy to tailor their own policies to reduce the risk of serious criminal activity occuring. but some businesses go overboard in regards to their own risk management handbook/policies.
EG bitinstant use to have a $500 limit, some other exchanges only allowed a $50 a day limit.

businesses cannot lock out a customer from their funds, or cause undue stress or delay but they refuse certain services to customers that do not wish to comply to their policies. EG having the withdraw/deposit fiat buttons disabled unless KYC details are verified.

i have no clue why MTGOX are messing with bitcoin features. but its MTGOX's policy of risk management, its not the government authorities regulation to do this.

it may be to prevent EG:
customer A depositing FIAT from USA BANK, converting to BTC to the give to customer B via MTGOX codes who converts it to FIAT to then put into a swiss account on behalf of customer A(laundering/tax evasion). but seeing as customer A and customer B should be KYC checked with their fiat withdrawals or deposits. i see no reason to hinder bitcoin services. all mtgox needs to do is log all internal transactions, in case one of the customers does flag up as a known link to serious crime. it would show the logs.

to me i think MTGOX whole system is lacking in many features and security. so i dont trade with them. i prefer other exchanges that seem to be more understanging of fiat regulations and underatnding how to be compliant without distrupting customers lives