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Money transmitter regulation at state level already enforce the first and third. Money transmitters must retain and account for all customer funds on deposit. T
by saosebastiao 9y ago
Money transmitter regulation at state level already enforce the first and third. Money transmitters must retain and account for all customer funds on deposit. That is why I won't put any money into an exchange that avoids states that regulate exchanges as money transmitters (looking at you, Kraken).
I really wish the SEC or FinRA would supercede the state level money transmitter regulations. It makes little sense for a money transmitter that transmits money across state borders to be regulated by the whims of both states instead of the government that has regulation of interstate commerce as part of its constitution. And it would give regulatory evaders like Kraken an all or nothing choice instead of their current practice of only doing business where there's no regulation.
- nosuchthing 9y agoExcept, most of the major exchanges are registered in places like Seychelles or the British Virgin Islands as shell corporations. Bitfinex and Bitmex are two of the largest exchanges and it certainly seems like there's frequent incredibly shady activity with frequent large flash crashes presumably as insider trading to liquidate margin calls and/or stop loss orders. https://medium.com/@bitfinexed/latest https://medium.com/@bitfinexed/latest
- saryant 9y agoIsn't Coinbase registered in and regulated by New York State?
- nosuchthing 9y agoYes, I've only heard Coinbase/GDAX and Gemini are the only fully regulated and audited US based exchanges which have qualified for the New york BitLicense.
- josu 9y ago>Except, most of the major exchanges are registered in places like Seychelles or the British Virgin Islands as shell corporations. I don't think this is true. Apart from Bitmex, I'm not aware of other major exchanges being registered there. Bitstamp (Europe), Coinbase (US), Kraken (US), Bitfinex (HK), Binance (HK?).
- Animats 9y agoIf you register with the SEC as a broker, dealer, or exchange, you don't have to deal with state level money transmitter regulations.