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Bitcoins Going Mainstream?

Some interesting news on bitcoins, a bitcoin exchange as been given the right to operate as a bank in the Euro Zone:

http://arstechnica.com/tech-policy/2012/12/bitcoin-going-mai...

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Cyril's picture

1958 act

Bitcoins isn't a bad idea. However, on Credit Mutuel and the 1958 act :

http://fr.wikipedia.org/wiki/Cr%C3%A9dit_mutuel#1958_Conf.C3...

"[...]la nécessité pour le Crédit mutuel de se soumettre à la politique du crédit et au contrôle de son bon fonctionnement par l'État."

Translation :

"the need for Crédit Mutuel to undergo credit policy and control of its operation by the state."

Hear.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Yep..

a bitcoin exchange becoming a formal bank means the govt could confiscate all the exchange's bitcoins for not complying with regulations.

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~wobbles but doesn't fall down~

I don't think they'll be able to confiscate their Bitcoins

Taking the Euros or other Fiat is a lot more plausible then their ability to just "take" the bitcoins

It will be interesting to see what will happen

Just plain 'Happy'about the direction the world is taking! Especially if we live to reach LEV [Longevity Escape Velocity]

Governments all over the world....

frequently and routinely shut down and/or seize the assets of financial institutions for non-compliance with KYC (know your customer) regulations.

The assets of a bitcoin exchange operating as a bank would be deposits of bitcoins by customers. Banking laws all over the world demand that banks know their customers and that the banks provide account and account holder info to the government upon request. Europe requires banks to comply with KYC and actively seizes the assets of banks that don't conform with KYC. These rules would apply to a bitcoin bank in Europe.

All of this is long and established practice and legal precedence in most countries in the world...

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~wobbles but doesn't fall down~

Ummm....

KYC (know your customer) is a requirement for banking institutions in both the US and Europe and as well for most Asian banks. Bye bye any pretense of anonymity...

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~wobbles but doesn't fall down~