Re:Mt. Gox Files for Bankruptcy Protection
by cyphunk on Friday February 28, 2014 @10:07AM
(#7319039)
Why would bitalo ever require users ID themselves or provide bank details? multisignature scheme already adds a latency on transaction. just not clear how this exchange works. Is it P2P where users transact between each others bank accounts. If so the AMA/KYC seems unnecessary.
[ Parent
| on HN ]
The reason is two-fold. One is legal/regulation stuff, as jccooper said (for seller account especially). Second is seller protection - if a buyer wants to scam sellers, we can blacklist him based on his ID, so he cannot scam anyone again.
Re:Mt. Gox Files for Bankruptcy Protection
by jccooper on Friday February 28, 2014 @01:42PM
(#7320633)
Legal reasons, almost certainly. I don't know about Finland or Germany or EU specifically, but it seems likely they have "money transmitter" requirements to combat money laundering. I doubt the regulators and/or law know or care much about multi-sig transactions. If they touch money changing hands, they almost certainly have to comply.
You can't move money without the government's permission, you know. Very naughty.