@patio11
19h19 hours ago
Eventually, a bank or, more likely, a regulator is going to say “Actually this doesn’t look like a legit deposit that we’re uncomfortable with supporting due to AML/regulatory reasons. It looks an awful lot like proceeds of crime intermingled with grey money.”
@patio11
19h19 hours ago
More
And the terrifying outcome, from the cryptocurrency economy perspective, is the regulator doing what the USFH did with respect to Mutum Sigillum (Mt Gox’s US front): “OK, we’re going to give you two choices.”
@patio11
19h19 hours ago
More
Door #1: Prove that it’s legal money. This should be trivial for you because KYC is the law and your compliance should be automatic. So have your lawyer suit up. BTW we expect this to take 3+ years.
A clear abuse, it's the government's job to prove illegal deeds. Holding customers funds hostage under the threat of bankruptcy, while the company navigates the complex legal minefield the government itself created is just about the most corrupt system and farther from the rule of law you can get, short of direct confiscation.
They even went as far as claiming MtGox was a money transmitting business because it was a customer of Dwolla, and so customers of Dwolla could send money to themselves by withdrawing and depositing dwolla to MtGox:
http://k.lenz.name/LB/2013/05/16/seizure-warrant-against-mut...
@patio11 19h19 hours ago Eventually, a bank or, more likely, a regulator is going to say “Actually this doesn’t look like a legit deposit that we’re uncomfortable with supporting due to AML/regulatory reasons. It looks an awful lot like proceeds of crime intermingled with grey money.”
@patio11 19h19 hours ago More And the terrifying outcome, from the cryptocurrency economy perspective, is the regulator doing what the USFH did with respect to Mutum Sigillum (Mt Gox’s US front): “OK, we’re going to give you two choices.”
@patio11 19h19 hours ago More Door #1: Prove that it’s legal money. This should be trivial for you because KYC is the law and your compliance should be automatic. So have your lawyer suit up. BTW we expect this to take 3+ years.
Door #2: We propose a 50% haircut.