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Isn't that just what Kraken or Coinbase already does? Someone needs to be the operator of exchange between fiat and crypto, at which point they and you will be

by 0wing 9y ago

Isn't that just what Kraken or Coinbase already does? Someone needs to be the operator of exchange between fiat and crypto, at which point they and you will be subject to tax and regulation. Anyone who operates an exchange is subject to money transmitter laws and KYC laws. Anytime you convert from cryptocoins to fiat, you're subject to capital gains tax if you're a US citizen. https://www.usatoday.com/story/tech/2014/01/27/bitcoin-dealers-charged-with-money-laundering/4941313/ https://www.usatoday.com/story/tech/2014/01/27/bitcoin-deale... https://cointelegraph.com/tags/localbitcoins https://cointelegraph.com/tags/localbitcoins

jv22222 9y ago
> Isn't that just what Kraken or Coinbase already does? No. It's more akin to an operating system of money rather than a proprietary siloed app.
- 0wing 9y ago
  Except you can't get usable fiat out? There needs to be an endpoint distributor of physical cash, SWIFT, or wire transfers of real fiat and those end points are subject to regulation just like localbitcoins or ATM machines are subject to regulation. Can you explain how a decenteralized exchange provides USD? abstracted IOU "stable-tokens" like Tether are NOT USD, see the case of Liberty Reserve [1] or [2] [1] https://en.wikipedia.org/wiki/Liberty_Reserve https://en.wikipedia.org/wiki/Liberty_Reserve [2] https://hackernoon.com/the-curious-tale-of-tethers-6b0031eead87 https://hackernoon.com/the-curious-tale-of-tethers-6b0031eea... https://medium.com/@bitfinexed/are-fraudulent-tethers-being-used-for-margin-lending-on-bitfinex-5de9dd80f330 https://medium.com/@bitfinexed/are-fraudulent-tethers-being-...
  - jv22222 9y ago
    > Can you explain how a decenteralized exchange provides USD? A major part of the OmiseGo plan is full cash-in/cash-out capabilities via as many ATMs as they can get connected to. They have access to quite a few thousand ATMs out the gate via strategic investments and partnerships with a number of very large banks in Aisia. Their parent company is Omise (basically the Asian Stripe) already has a cashflow of $100-$500m/day. FYI They will be switching all their existing business to run on the new dex, so from the get go it will start with a large volume as the test case. Checkout the OmiseGo white-paper for the main details.

by 0wing 9y ago

jv22222 9y ago

> Isn't that just what Kraken or Coinbase already does? No. It's more akin to an operating system of money rather than a proprietary siloed app.

0wing 9y ago
Except you can't get usable fiat out? There needs to be an endpoint distributor of physical cash, SWIFT, or wire transfers of real fiat and those end points are subject to regulation just like localbitcoins or ATM machines are subject to regulation. Can you explain how a decenteralized exchange provides USD? abstracted IOU "stable-tokens" like Tether are NOT USD, see the case of Liberty Reserve [1] or [2] [1] https://en.wikipedia.org/wiki/Liberty_Reserve https://en.wikipedia.org/wiki/Liberty_Reserve [2] https://hackernoon.com/the-curious-tale-of-tethers-6b0031eead87 https://hackernoon.com/the-curious-tale-of-tethers-6b0031eea... https://medium.com/@bitfinexed/are-fraudulent-tethers-being-used-for-margin-lending-on-bitfinex-5de9dd80f330 https://medium.com/@bitfinexed/are-fraudulent-tethers-being-...
- jv22222 9y ago
  > Can you explain how a decenteralized exchange provides USD? A major part of the OmiseGo plan is full cash-in/cash-out capabilities via as many ATMs as they can get connected to. They have access to quite a few thousand ATMs out the gate via strategic investments and partnerships with a number of very large banks in Aisia. Their parent company is Omise (basically the Asian Stripe) already has a cashflow of $100-$500m/day. FYI They will be switching all their existing business to run on the new dex, so from the get go it will start with a large volume as the test case. Checkout the OmiseGo white-paper for the main details.