Ninjastic
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Re: LocalBitcoins is no longer available in Germany ?
by
malaimult
on 10/12/2014, 04:50:17 UTC
Quote from: newIndia on December 09, 2014, 03:00:18 PM
Quote from: malaimult on December 09, 2014, 06:34:03 AM
Quote from: johnyj on December 09, 2014, 02:12:39 AM
-snip-

So eventually those sellers on the platform have to comply with "know your customer" rule and collect ID document from buyers. But I think localbitcoins just do escrow service, thus not directly related to money transfer, should not be regulated

-snip-
I don't think that LBC will ever force their customers to go through KYC/AML verifications with them directly for that exact reason (they are only an escrow service). It has been ruled/determined that someone running an escrow service does not qualify as a money transmitter and will not be regulated as such. The seller of bitcoin on the other hand technically is a money transmitter and should comply with KYC/AML rules, however they rarely do (AFAIK)

I think Bitcoin can be regarded as a digital commodity like eBook or MP3. If they try to force bitcoin sellers to have KYC from buyers, then these e sellers should also come under the same periphery.
This is much easier said then done. The fact that bitcoin is not centralized (and is p2p) means that it is nearly impossible to force traders to act with any guidelines that are "set in stone"