The regulation so that Square, Paypal, Dwolla and every other bank can participate in Bitcoin EXISTS. KYC, AML, etc. exist. The SEC exists. MSB and Banking lic

The regulation so that Square, Paypal, Dwolla and every other bank can participate in Bitcoin EXISTS. KYC, AML, etc. exist. The SEC exists. MSB and Banking licenses exist. SEC regulation on exchanges exists. These regulations are expensive for startups. But they're a nobrainer for established institutions because they already qualify. There's nothing the "community" can do to make regulatory compliance easier for Banks and MSB'es. Because Banks and MSB'es are ALREADY licensed, regulated and in compliance. The whole thing is a red-herring.