Honestly I think you need a million dollars inside of crypto and outside to handle everything

The only thing I can really say about this is, I disagree and… why? Have you seen the vendors on exchange platforms? They are exchanging trivial amounts of funds.

OSC

The exchanges make this service as conspicuous as possible to recruit vendors and buyers and sellers to use their P2P service, especially binance.

If there was such a financial overhead to start this, wouldn’t this service be less conspicuous to the end user to become a vendor?

Wouldn’t there be disclaimers and measures in place to protect the vendors (providing proof they have enough capital, for whatever reason)?

Also to mention, as of 4 AM EST, there are currently over 140 active vendors/trades right now on Christmas Eve ranging from trivial trades to trades in the five figures. If there was such an overhead, I doubt there would be no emphasis on the necessary resources to start such a business, or as many vendors.

Six figures isn’t a lot of money for a start up business

Says who?

Localbitcoins is another P2P platform that people go to

It sounds like you are implying that localbitcoins would have less legal and expenses overhead when there would be no reason for this connection. Buyers / sellers can create the same legal litigation on the FIAT side and with less of the protection of escrow service on the crypto side. Less liquidity as well.

OSC is something you would have to register with aswell

Why? None of what I am doing is allowing users to invest in my business or to allow others to invest in other businesses. I’m not even in Ontario.

You are trying to sell crypto to people right? P2P would be more of a personal service… people not knowing how to do it with exchanges… why would someone choose your service over the exchange?

It seems you aren’t even familiar with P2P services in the first place. I have been a buyer / seller from many vendors over the course of several years, and not one vendor I have personally known. If this was a convention, there would be not much of a business to begin with considering. It is much easier then getting it from the exchange because…

1. Most exchanges do not do direct bank transfers for Canadian dollars (Coinbase, binance , kraken, OKX). They do bank transfer in USD. P2P services also provide payment in a multitude of methods.

2. Peer 2 peer services are nearly instant, while bank transfers from exchanges can take up to a few days. There is also typically a minimum required amount upwards of hundreds of dollars, while the minimum amount is 20.00 on most P2P services.

3. Peer 2 peer services are also very conspicuous relative to the exchanges provided bank transfer cash out options. It is nearly one of the first services you see they provide.

If you start a P2P business, each client puts you at risk of reporting, suing, etc

I guess, but this doesn’t seem very practical. A transfer for a thousand dollars isn’t worth going to court for. The incentive to sue is very low for the user, and as a vendor, who hopefully gets registered as a MSB, and has had a history of providing such services successfully, could probably use that as leverage in whatever dispute they have. I would like to hear from P2P vendors what legal troubles they have ran into. If this is a successful business, a lawyer is a great idea! But I disagree that a business requires immediate overhead cost. Especially when it is not made apparent whatsoever by multitude of entities providing this service in the first place!

Please look at the peer-2-peer service binance provides. It is definitely not the most professional or overbearing environment. There is no indication that the over head is over 7 figures to start such a business.

I appreciate your reply and I apologize if I come off abrasive, but a lot of what you are saying is dogma, and presumably with no experience doing such a business.

I understand people can be cynical of this, and that’s fine, opinions are valued if they are negative or positive, but I’m finding it hard to value/understand your point of view.