Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Delgboke on July 25, 2019, 06:54:32 AM
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Concerning the recent indictment of 46 year old William Green in US for running unlicensed cryptocurrency exchange.
The report https://www.cryptoinformers.info/news/213-a-46-year-old-man-indicted-for-running-unlicensed-cryptocurrency-exchange-in-us here said that William Green has converted over $2 million in fiat money to Bitcoin and the US Department of Justice said that it is a punishable offense under the federal law because he fails to register for money transmission.
My question is, is it compulsory for Exchange to gain lincese?
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Every country has different regulations, in my country, crypto exchanges require a license from the state financial watchdog, this makes all crypto assets if exchanged with fiat requires a bank account, therefore licenses from state finance supervisors are needed to avoid theft and Other things
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the licensed part is to insure that his platform is trusted and Not a scam project. i think it is necessary for all Exchange to be licensed and also monitored to prevent unexpected shut down.
The reason why he was arrested for money conversion is what i don't understand. i think we have our right with what we do with our fiat money.
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i have read that to ensure legal functioning of such exchange, licensing of the crypto currency exchange is mandatory
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Absolutely. It is just common sense because if you are going to put your hard-earned money with them, you need security and that’s only possible with license. If one is not properly licensed, they could simply run away and you can’t do anything about it. So this is where Crypto Exchange (https://cryptolinks.com/cryptocurrency-exchange) we pick must be of highest quality. If we are not wise with this aspect, it will just create kind of environment for us that is no way beneficial at all.
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My question is, is it compulsory for Exchange to gain lincese?
The way things are being run now, you cannot operate any legit business without being registered to the relevant government agency.
The reason why he was arrested for money conversion is what i don't understand. i think we have our right with what we do with our fiat money.
Those are not his money. He is engaged in a fiat-to-BTC conversion service which means he gets money from customers then convert it to BTC. That is clearly stated in the article:
According to the release, the indictment filings and court statements shows that Green operated a fiat-to-Bitcoin (BTC) conversion service through the website Destination Bitcoin. Green reportedly would receive money from his customers in order to convert their cash to BTC. The findings further indicated that Green had not registered with the Secretary of the United States Treasury in any capacity.
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Concerning the recent indictment of 46 year old William Green in US for running unlicensed cryptocurrency exchange.
The report https://www.cryptoinformers.info/news/213-a-46-year-old-man-indicted-for-running-unlicensed-cryptocurrency-exchange-in-us here said that William Green has converted over $2 million in fiat money to Bitcoin and the US Department of Justice said that it is a punishable offense under the federal law because he fails to register for money transmission.
My question is, is it compulsory for Exchange to gain lincese?
Licensed is needed when the exchange platform is using Fiat as a medium to exchange in crypto to fiat. it is necessary to obtain licensed because its a legal tender from the government itself and subjected to monitary rules of any country.
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To me , it is very compulsory as this helps to be sure the exchange will hardly close down and run with customers money. I am more comfortable comfortable with a regulated exchange
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Licensing is the first factor to consider an exchange legitimate. At least an exchange should have a license to prove its reliability. But I don't think that a license is a must for a crypto exchange, as long as that exchange can prove its honesty.
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It's one of the requirements to operate a business you need to have a license, it should be permitted from the government to operate legally and it also depends with laws passed by regulators in your jurisdiction.
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In the future, states will require licensing of all cryptocurrency exchangers. It is possible that only exchangers located in some offshore zones will remain without licensing. In the end, I do not think that it is very bad. We are not going anywhere from this kind of regulation of cryptocurrency activities. But the order will be more, and less scam.
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To oblige the exchange to obtain licenses for cryptocurrency activities - you need to have well-developed laws. It is necessary to clearly determine the status of cryptocurrencies-that it is money,property or something else.
Until this is done,many exchanges will simply go to other jurisdictions where there is a friendly attitude to cryptocurrencies.
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If you plan to run a business in any jurisdiction, you need to register. Unless you plan to keep running away from the authorities like that 46 year old guy. This will also serve as a protection in case something happens to your business.
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Actually, so far many exchanges have their license, however, what kind of license that will make the users believe? In some countries, the local exchanges will need to register their exchange to the country regulation to have a certain license. But, for the decentralized exchange, I don't know whether it will be.
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Must have a license for a company that has a big advantage because it can be said that it is for the state tax.
If America has the competitiveness or the right business there is very advanced and then the cryptocurerncy itself is very irrelevant to support.
And it is certain that each country has a different law on regulations for its citizens to open jobs including the exchange of cryptocurrency.