4 ms·

This is pure speculation but I think it could have something to do with them using CapitalOne's P2P transfer for high volume business transactions. I'm sure the

This is pure speculation but I think it could have something to do with them using CapitalOne's P2P transfer for high volume business transactions. I'm sure they violated the terms of service somewhere.

_red 13y ago
Remember how a few weeks ago when the USGov released a reported acknowledging BTC as a currency? Remember how everyone thought that was a great thing? There was a hidden point to that. Being a currency brokerage company requires millions in compliance / certification / regulatory fees. Its not like the big NY banks are going to just let people get their money out of the system without a fight.
- julespitt 13y ago
  The FinCEN guidance explicitly states that Currency Exchange regulations do not apply: http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.... "A person must exchange the currency of two or more countries to be considered a dealer in foreign exchange. Virtual currency does not meet the criteria to be considered 'currency' under the BSA, because it is not legal tender. Therefore, a person who accepts real currency in exchange for virtual currency, or vice versa, is not a dealer in foreign exchange under FinCEN’s regulations." Edit: Just need to clarify that Money Transmitter regs do apply.
  - apaprocki 13y ago
    Regulations certainly apply. For example, in the case of Bitfloor's local BoA deposit, a third party was accepting cash deposits and forwarding the money to the exchange. That requires the third party to be a money transmitter and could have repercussions if the bank account was also with BoA.
    - julespitt 13y ago
      Sure - I was just responding to the claim that it was Currency Exchange regulations that apply here.
- ericd 13y ago
  I'm pretty sure the NY banks have things they think are much more important to worry about currently - people "leaving the system" isn't a blip on their radar yet.
  - eric_bullington 13y ago
    Well, I think they've noticed the blip, and are at least pretending not to be concerned: http://blogs.wsj.com/moneybeat/2013/04/17/bitcoin-doesnt-scare-discover/ http://blogs.wsj.com/moneybeat/2013/04/17/bitcoin-doesnt-sca...
_delirium 13y ago
I'm surprised they were able to use CapitalOne's P2P at all, unless their volume was quite low: P2P has a $5000-per-day aggregate transfer limit.

_red 13y ago

Remember how a few weeks ago when the USGov released a reported acknowledging BTC as a currency? Remember how everyone thought that was a great thing? There was a hidden point to that. Being a currency brokerage company requires millions in compliance / certification / regulatory fees. Its not like the big NY banks are going to just let people get their money out of the system without a fight.

julespitt 13y ago
The FinCEN guidance explicitly states that Currency Exchange regulations do not apply: http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.... "A person must exchange the currency of two or more countries to be considered a dealer in foreign exchange. Virtual currency does not meet the criteria to be considered 'currency' under the BSA, because it is not legal tender. Therefore, a person who accepts real currency in exchange for virtual currency, or vice versa, is not a dealer in foreign exchange under FinCEN’s regulations." Edit: Just need to clarify that Money Transmitter regs do apply.
- apaprocki 13y ago
  Regulations certainly apply. For example, in the case of Bitfloor's local BoA deposit, a third party was accepting cash deposits and forwarding the money to the exchange. That requires the third party to be a money transmitter and could have repercussions if the bank account was also with BoA.
  - julespitt 13y ago
    Sure - I was just responding to the claim that it was Currency Exchange regulations that apply here.
ericd 13y ago
I'm pretty sure the NY banks have things they think are much more important to worry about currently - people "leaving the system" isn't a blip on their radar yet.
- eric_bullington 13y ago
  Well, I think they've noticed the blip, and are at least pretending not to be concerned: http://blogs.wsj.com/moneybeat/2013/04/17/bitcoin-doesnt-scare-discover/ http://blogs.wsj.com/moneybeat/2013/04/17/bitcoin-doesnt-sca...

_delirium 13y ago

I'm surprised they were able to use CapitalOne's P2P at all, unless their volume was quite low: P2P has a $5000-per-day aggregate transfer limit.