Its a simple idea, leverage the advantages of the devision of labor in order to overcome government meddling.

The exchange would open up shop probably in either los-angales or new york and would only accept deposits in the form of cash at the front counter. The exchange would be safe from a myriad of legal trappings which would allow them to focus 100% on the service they are intended to provide and the market could innovate highly decentralized mechanisms of getting cash from one side of the country and into the front door of the building. Decentralized community of peers working within the framework of a reputations systems could provide the money transmission instead of some big payment processing company. As an example, suppose we have two brothers, one lives next to the exchange and another 1000 miles away. The one brother could take payments and the other would make deposits and when ever they visited each other periodically they would clear out the debt between each other, always operating within the black or gray market.

There may be a really good reason why this doesn't exist and i just havn't thought about it yet.