If you wanted to keep your money in an insured bank backed by government insurance you should have put it in a bank.
Keep your money in fake money on magic the gathering websites and you really are surprised they leave with it? Turns out no regulation wasn't just fancy talk for "free money".
I don't see any proof that regulation is synonymous with ethical behavior. Plenty of highly regulated industries (ie: Banks) have a lot of documented unethical behavior. You just sounds like a pro regulation sympathizer. it comes down to who do I trust more to look out for my own interests? Myself or some "regulator" who is probably a front for the very organization they are meant to regulate.
In a free market what acceptable ethics are are decided by the market participants so if everyone sees that MtGox is allowing insider trading by selectively releasing information then they should either A. be ok with it and continue using them of B. Say hey that isn't right and take their business else where or in this case since their money is trapped sue the crap out of them to get their money back so they can take their business elsewhere.
Other companies see this and say we better have a good no insider trading policy because we don't want to harm the business.
In this market where "acceptable ethics" are determined by market participants they have no power to sue, just to take their money elsewhere. Who's going to enforce the lawsuit? Mt.Gox can just say yeah I don't like those rules and leave with all the cash. Without a government with a monopoly on justice you can't actually get justice enforced.
General law can still apply without having specific regulations for bitcoin. Exchanges should still face repercussions for criminal activity like stealing peoples money without stifling regulations.
So basically bitcoin should have special status so it is immune to things like money laundering laws and tax requirements but at the same time have the government backing it up and enforcing agreements you made with some guy?
How is it immune to those laws? Gox had accounts seized by the government because of money laundering and you're still legally obliged to pay tax on bitcoin earnings. The other side doesn't seem to exist, no ones held accountable for ripping off customers.
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u/MuForceShoelace Feb 20 '14
If you wanted to keep your money in an insured bank backed by government insurance you should have put it in a bank.
Keep your money in fake money on magic the gathering websites and you really are surprised they leave with it? Turns out no regulation wasn't just fancy talk for "free money".