W3C home > Mailing lists > Public > public-webpayments@w3.org > September 2013

Tradehill Bitcoin exchange shut down for 2nd time in 2 years

From: Manu Sporny <msporny@digitalbazaar.com>
Date: Tue, 03 Sep 2013 12:58:03 -0400
Message-ID: <5226151B.3090906@digitalbazaar.com>
To: Web Payments CG <public-webpayments@w3.org>
The Tradehill Bitcoin exchange has just been shut down for 2nd time in 2
years. This after just recently partnering with the Internet Archive
Federal Credit Union to store customer funds in FDIC insured accounts.

It seems as if there is no way regulators are going to allow them to
operate without Money Transmitter Licenses. Getting money transmitter
licenses in all 50 states requires a company to go through an entirely
different process in each state. It requires that company to be surety
bonded for around $25M dollars, which results in close to $140K/year in
fees to operate. The regulatory environment in the US is forcing many
Bitcoin exchanges out of business:

http://bitcoinsinsider.com/regulation-forces-tradehill-bitcoin-exchange-to-suspend-all-trading_b249

This has deep repercussions for the work that we're doing here. It
doesn't matter if we create a great open payment technology if no one
will be allowed to use it due to the current regulatory environment.

-- manu

-- 
Manu Sporny (skype: msporny, twitter: manusporny, G+: +Manu Sporny)
Founder/CEO - Digital Bazaar, Inc.
blog: Meritora - Web payments commercial launch
http://blog.meritora.com/launch/
Received on Tuesday, 3 September 2013 16:58:25 UTC

This archive was generated by hypermail 2.4.0 : Friday, 17 January 2020 19:07:24 UTC