5 ms·

Sure, the barrier to entry is lower, but that may not always be the case, especially once the big players start to push towards regulating competition out of th

Sure, the barrier to entry is lower, but that may not always be the case, especially once the big players start to push towards regulating competition out of the market. Even existing regulations are already a show-stopper for any company without the considerable capital necessary to tackle the morass of money transmission laws and licencing concerns that vary from state to state. There is also a big first mover advantage in payment processing because there isn't very much room to innovate beyond lower fees (hard to beat bitpay's 0%) and a reputable brand. I think there is a real risk that we'll see bitcoin processing completely swallowed up by these big players.

ThomPete 12y ago
How can they push toward regulation? Honest question? I could set up wherever i want i the world right?
- vectorpush 12y ago
  Yes, you can setup wherever you want, but if you want to process payments for U.S. businesses then you need to act in accordance with U.S. money transmission laws, otherwise, nobody will do business with you. Currently, bitcoin payment processors do not fall under the purview of MSB or MTB classification, but that could easily change, especially because cryptocurrencies are still a relatively new concept.
  - ThomPete 12y ago
    But then it's the US businesses that will not be in compliance right? Not me?
    - sushid 12y ago
      Right, but if US (et al.) merchants are not using your service because using your service means they're not in compliance, you won't be much of a competitor in that field.
      - ThomPete 12y ago
        Which if the rest of the world is, is going to decrease the risk of any legislation happening to begin with no?
        moe 12y ago
        You are a bit late... http://en.wikipedia.org/wiki/Legality_of_Bitcoin_by_country http://en.wikipedia.org/wiki/Legality_of_Bitcoin_by_country
        ThomPete 12y ago
        Unless you are being overly pedantic I don't understand what your point is. And if it is just pedantic then oh well.
        moe 12y ago
        The point was that Bitcoin already is regulated pretty much everywhere. If you have pockets deep enough to exploit any of the remaining loopholes it'd likely be cheaper to just get a regular license.

ThomPete 12y ago

How can they push toward regulation? Honest question? I could set up wherever i want i the world right?

vectorpush 12y ago
Yes, you can setup wherever you want, but if you want to process payments for U.S. businesses then you need to act in accordance with U.S. money transmission laws, otherwise, nobody will do business with you. Currently, bitcoin payment processors do not fall under the purview of MSB or MTB classification, but that could easily change, especially because cryptocurrencies are still a relatively new concept.
- ThomPete 12y ago
  But then it's the US businesses that will not be in compliance right? Not me?
  - sushid 12y ago
    Right, but if US (et al.) merchants are not using your service because using your service means they're not in compliance, you won't be much of a competitor in that field.
    - ThomPete 12y ago
      Which if the rest of the world is, is going to decrease the risk of any legislation happening to begin with no?
      - moe 12y ago
        You are a bit late... http://en.wikipedia.org/wiki/Legality_of_Bitcoin_by_country http://en.wikipedia.org/wiki/Legality_of_Bitcoin_by_country
        ThomPete 12y ago
        Unless you are being overly pedantic I don't understand what your point is. And if it is just pedantic then oh well.
        moe 12y ago
        The point was that Bitcoin already is regulated pretty much everywhere. If you have pockets deep enough to exploit any of the remaining loopholes it'd likely be cheaper to just get a regular license.