Multiple underground vaults
In other words, their mothers' basement?
A new online trading platform based in London is to open next week to those seeking to exchange British pounds for the virtual currency Bitcoin. Traders are now able to register with Coinfloor providing they come from the UK or Europe, although they will not be able to buy or sell currency on the platform until 5 November, …
In other words, their mothers' basement?
Both Apple and Google started in a Garage.
...and so did Microsoft?
What could possibly go wrong . . . .
Only yesterday I was reading up on Bitcoins, and looked into buying a few as an experiment, but read that it's difficult in the UK at the moment. Then the very next day along comes these guys..!
Along come these guys to sell you long numbers. Speculate well, AC, and don't invest more than you are willing to lose....
Can we safely presume that a new improved version of Silk Road will be opening up in the very near future ?
As much as I like the idea that Bitcoins remove the banks from the equation, I also understand that it quickly becomes a parallel system for anything illegal.
Legal theft continues to use the traditional banking systems. ( Greenspans, Madoffs, Wall street etc)
Illegal activity uses Bitcoin.( Mafia, Drug dealers, arms dealers etc)
Can't we just have a system for the common man, who is involved in neither of these activities....please...
"As much as I like the idea that Bitcoins remove the banks from the equation, I also understand that it quickly becomes a parallel system for anything illegal."
As nothing illegal is done with folding money!
Did you read their whole post, which also included a similar point?
The holistic approach?
The drug deal is done with Bitcoin, then chopped up with a bank card, then inhaled via a note.
Umm - Madoff certainly wasn't legal theft. Illegal activities use cash too. Should we ban that before it continues?
"Illegal activity uses Bitcoin.( Mafia, Drug dealers, arms dealers etc)"
I think you find the netherworld quite happily used real banks, with the assistance of said real banks. There are many apparently legal ways to launder profits.
So far, I have seen the banks working illegally, and on a much larger scale and complete impunity. The small time criminals are mostly made up of people sticking it to the big time criminals. I'll support the little ones, as long as they leave me alone.
It will be excellent if this lets me transfer Bitcoin back into pounds easilly. I tend to use localbitcoin if I have to at the moment, but I have never got used to the high transfer costs individual buyers impose.
Unlike the banks, this will eventually get slammed with massive regulation and driven out of business, only to be picked up by a bank. Then the real frauds and tax evasion can begin.
Your cynism and grabbing for cheap upvotes aside you would realise that banks are already slammed with so much regulation that its effectively a closed market.
For examples- to my knowledge every major UK mobile Telco has looked at getting a Bancking license only to be put off by the capital and regulatory demands - excepting Telefonica who went ahead and even then they have split the risk by partnering with Barclays.
Whether that regulation is effective is another matter - but I can assure you its massive.
..is to create a barrier to entry that only the incumbents can afford, thereby creating a de facto and a de jure cartel or monopoly.
I think you are confusing cause and effect. But I agree with you about the end result.
"banks are already slammed with so much regulation"
Really? Please explain the banking crisis then and the continuing "light-touch" policy. The lack of any person being held to task. The continuing MASSIVE tax evasion and money laundering schemes. The exposure of the low-paid to the volatility of the stock-market. etc etc etc.
I'll agree that there is ass-hattery from the government (e.g. Burnley Savings and Loans), but that's not the same as actual, efficacious regulation.
'Coinfloor added that its security policy complies with the ISO27001 data security standard'
The same standard the Ministry of Justice complies with, that's reassuring :-(
"Complies with..." does not equal "is certified to". anybody can claim to 'comply with...".
And ISO27001 is not really a data secuirty standard - it is a standard for managing information security, and assessing (and controlling) identified risks. there is no 'your password must be x", "you must encrypt y" as there is in, say PCI-DSS.
My password is monkey2013, not x.
I guess I don't meet the standard.
A wholly owned subsidiary of GCHQ?
What usually happens is an exchange is set up, operates for a while then is forced to shut down.
The tin foil brigade scream about "teh evil banks" but it is usually that the companies operating the exchange has not set themselves up as a money transmitter which means following a lot more regulation. At least they are doing AML/KYC but again many in the cult will see this as interference.
""A few times per day, an undisclosed (more than 1) number of Coinfloor agents go to multiple underground vaults in separate locations held with separate companies to visit the USBs containing encrypted private keys. In the heart of the deposit chamber the agent signs user's withdrawal transactions on an offline computer and then once the agent is above ground, the agent takes the signed transactions to an online computer and uploads them to the Bitcoin network. We believe this protects us from all methods of online attack and prevents against physical (rubberhose) attack, as the private keys are never together in one place or accessible by one person," it said." -- A virus located on the online computer could infect the USB key that the agent is transferring the transactions from the offline computer to the online computer and setup a data passing scheme using the USB device.
I had to transfer a few thousand pounds from the UK to New Zealand. My bank gave me the option of paying more at this end and avoiding a charge at the other. That did not work, the NZ bank took a cut as well. Bastards! The banks need a wake up call, they have been taking the piss for too long.
"Coinfloor is registered with the HMRC for Anti Money Laundering (link) and has received formal communication from the FCA (conferring with the European Commission) stating that as the Bitcoin market currently stands, they do not see Bitcoin as requiring of regulation. Coinfloor maintains a good relationship with the UK and EU authorities."
First of all the FCA is not responsible for such activities as this. The The Prudential Regulation Authority has prudential responsibility for all deposit takers, insurers and significant investment firms, the category of which CF falls into. Have they applied to PRA for this?
Will bank on dave sign up for this?
I know it was a channel 4 docu but I found it interesting how arbitrary "banking" is. Let's face it , it is NOT rocket science.....;-)
I suppose the only difference between this "currency" and the national ones, is that there is noone printing "extra bank notes" for their mates.... (yes, i know there are no physical notes but QE is the same thing...)
Linux, 'cos my N9 had an app for that...
Bit coins are NOT regulated in the United States, although some regulators would like to try.
The moment you start using some regulatory service for an exchange, is when you start to transfer control of bitcoins over to a government.
You don't need to have an exchange. Euro's and US Dollar are all being devalued at a record pace, so it's in your best interest to keep it electronic, and purchase only from those that accept bitcoins as payment.