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RE: Starting a BitShares Gateway

in #cryptocurrency7 years ago

I am also interested in setting up a gateway.
I don't think you are going to get any straight answers about whether a BitShares UIA is a security until ASIC take an interest and make a statement.
There is a reasonable argument that a UIA used solely for moving cash in and out is not a security: it doesn't have any capital-gain or return a dividend, so it's not an investment in any sense.
My sense is ASIC currently consider crypto-currencies to be too much like hard work and are relieved AUSTRAC have been handled the responsibility. That won't change until they are forced to politically (somebody's granma get scammed by an ICO, media scream "ASIC are asleep at the wheel", etc, etc)
But that might take years, and I don't think its reasonable that the the entire industry freeze development until ASIC deign to decide what's allowed and what's not.
The bigger issue now is banks yanking accounts when they discover they are being used for crypto, this is why having multiple separate independent providers is ideal.
The disadvantage is that we will struggle to provide liquidity if we each run separate markets with our own UIAs. Would you consider making a "wholesale" sale of, say, $10k, of your UIA, and then our clients can use a single UIA in a single market?

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Oh really? That's awesome!

True, I'm hoping it will be considered along the same lines as traditional exchanges where they issue their own digital representations of fiat and crypto. Given I'm only issuing fiat and it's done on a blockchain it's even safer compared to them.

Yeah, that's made me a little concerned, I'll be sure to have some bank accounts for redundancy.

I agree, I think liquidity will be a challenge, like you say.


I'd absolutely be open to that, I've been considering the restrictions that would need to be set on the UIA to enforce its use as a simple utility. Otherwise, we could be left open to people transferring the UIA between themselves and the government considers it a money transfer service, independent cryptocurrency, etc.

Because of AUSTRAC's push for KYC each holder of the UIA will have to go through KYC, therefore for you to then pass on portions of your 10,000 UIA to customers you'll need to do KYC verification on them.

Therefore, in order me to pass on amounts of the UIA for further distribution a type of partnership would be created which pools KYC records in order to prove who possesses the UIA at all times, same way as traditional exchanges.

Let me know if you're interested!

Definitely, Steemit doesn't seem to have a PM function: so e-mail [email protected]

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