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It doesn't really make it that hard to cash in. See http://localbitcoins.com http://localbitcoins.com . You'll just get a slightly lower exchange rate. If th

It doesn't really make it that hard to cash in. See http://localbitcoins.com http://localbitcoins.com . You'll just get a slightly lower exchange rate. If they thought they didn't want people receiving traceable wire transfers from Mt. Gox, imagine how little they will like the alternative they are pushing people to - in-person cash trades. >The effect of that is what Patrick experienced where regulators start effectively 'regex' banning types of activities that are associated with these activities. What Patrick experienced is a symptom of the rules surrounding ACH transactions - namely that they can be charged back up to 6 months later (1 year in some cases). That makes banks squeamish about accounts receiving large numbers of them. I don't think ACH transactions in general are "associated" with criminal activity - most paychecks are delivered this way.

Nursie 13y ago
In person cash trades are easier to bust. Especially if there's much in the way of volume or the transactions are sizeable. They are also far more hassle and potentially dangerous. Don't pretend that making electronic transfers harder wouldn't suppress the market to some extent.
- ensignavenger 13y ago
  Yeah, but there is nothing illegal about an in-person cash trade, so what are you going to bust them for? (Well, I suppose the cops can always find something to bust someone on...)
  - Nursie 13y ago
    There are all sorts of inventive ways the cops can seize money, especially if the amounts are both large and frequent. In some places carrying huge amounts of cash is more than enough to get the cash temporarily impounded pending investigation, even with no other immediate suspicious circumstances. Besides which, the point was that (in general) forcing users into these sorts of arrangements is much more onerous on them than just sorting it all out electronically.

Nursie 13y ago

In person cash trades are easier to bust. Especially if there's much in the way of volume or the transactions are sizeable. They are also far more hassle and potentially dangerous. Don't pretend that making electronic transfers harder wouldn't suppress the market to some extent.

ensignavenger 13y ago
Yeah, but there is nothing illegal about an in-person cash trade, so what are you going to bust them for? (Well, I suppose the cops can always find something to bust someone on...)
- Nursie 13y ago
  There are all sorts of inventive ways the cops can seize money, especially if the amounts are both large and frequent. In some places carrying huge amounts of cash is more than enough to get the cash temporarily impounded pending investigation, even with no other immediate suspicious circumstances. Besides which, the point was that (in general) forcing users into these sorts of arrangements is much more onerous on them than just sorting it all out electronically.