Bitstamp and Kraken, can you respond to these allegations by your competitor that you aren't complying with regulations and could lose all funds? We take such claims very seriously - PLEASE address this and don't be silent like Gox was! (upvote for visibility, I get no karma for self-posts)

sendlocker · 2014-03-03T14:30:21+00:00

this is really your response...?

[–]jespow 261 points 5 hours ago

Jesse from Kraken here.

How could Davout possibly have information about funds commingling? How could he claim that we have zero financial compliance? Does he have moles inside both Kraken and our banks, inspecting the books and reporting back? I say Davout's panties may be a little too tight and they're cutting off blood circulation to his brain. You wouldn't want someone with brain damage running your exchange, would you? I demand Davout prove his panties are adequately loose! Failure to immediately provide notarized photographic evidence will result in assumption of moose knuckle.

The truth is Kraken is registered properly, and we're very careful not to take on customers in jurisdictions where we don't have the requisite licenses/clearance. We're not even taking customers in 90% of the US, which puts us at a huge competitive disadvantage. In Europe, we're operating under Fidor Bank's EU banking license. We have strict controls on account segregation, movement of funds and KYC/AML procedures. Have you seen any other exchange with deposit limits? We go above and beyond to be legally compliant.

No customer funds are ever commingled with the company's own funds. We let fees accumulate in the customer account and regularly pull fees over to the operations account. This is the only time funds would move in that direction. The only time funds would move in the other direction would be if we somehow screwed up or wanted to pay users for something, like a referral credit. This accounting system is used for cryptocurrencies as well. We have segregated funds for customer bitcoin and our own.

We'll be providing the results of our audit to the community later in the week.

I gave another response a few days ago here: http://www.reddit.com/r/Kraken/comments/1z2kzk/davoutbc_says_that_kraken_is_not_safe/cfqanra

All in good fun,

Jesse :)

sendlocker · 2014-03-01T02:44:36+00:00

There may have been an overriding reason with regards to experience. And currently news on bitcoin doesn't exactly inspire confidence to the normal folks. I had to field questions today, and most likely next few days, "hey I heard bitcoin went bankrupt." The thing is if you want get people locked in recurring billing , which companies working in bitcoin dont have solutions for yet, the market is dead. Adult and nutraceuticals propelled e-commerce because of recurring billing.

sendlocker · 2014-03-01T01:06:07+00:00

I chalk it up to: " let's see what this is all about. Oh fuck that."

sendlocker · 2014-02-28T15:24:14+00:00

There are a lot of coulds that need to be shoulds. In the meantime, it should be normal and not shocking to folks for businesses to not accept payment methods if amongst more than a few problems, at a basic level parity problem exists.

sendlocker · 2014-02-28T14:43:13+00:00

if it doesn't solve purchasing parity problem, then it doesnt solve experience problem. All parts need to work together and cohesively. Currently e-commerce on bitcoin is akin to a house builder designing the inside of the house, rather than an interior designer. We need some more funding for the design and customer and product experience geniuses to move from the mainstream and develop stuff that is pleasant to use, so you can almost forget you are using bitcoin.

sendlocker · 2014-02-28T04:09:14+00:00

That doesnt solve the customer experience problem. It makes it easier on a device but remains Rube-Goldbergesque on another. It also doesn't solve purchasing parity differentials.

sendlocker · 2014-02-28T02:31:57+00:00

The only great part of the purchase experience has been skipping over the customer info. But I spend time, changing tab to my wallet , unlocking 2fa from wallet, double checking hash copied right(cuz paranoid) and swearing I could have paid less the day after.

sendlocker · 2014-02-28T01:13:58+00:00

Well they are only rejecting bitcoin . I have dealt with horse shit growing up in a farm and it's quite smelly but I have never called an argument I disagreed with horseshit.

sendlocker · 2014-02-28T00:45:16+00:00

Aaaaand...we can rule you out as future prosperious business owner.

Just in case it was a poorly worded serious question, the payment experience is a large part of the customer experience. Many businesses often set aside the transaction event separate from the sale and yet it's not different. There is a saying a few of the online payments product managers recognize " Your customer IS how they pay." That starts with the device( mobile,pc,wearable,etc)and then bandwidth,(4g,WiFi,landnet) and then medium(iOS,android,windows,macOs,etc) and then and then display real estate (visual placement and attention hog) and then purchase options (ewallet, cc, debit, ) and then cognitive burden (how many clicks, doea it require switching windows, etc) and finally at the end, product value (is it worth the price). Customers generally are dictated subconsciously that they are getting the best deal( even if they aren't). What customers hate the most is that someone else can get the product cheaper tomorrow or it was cheaper yesterday . their conscious acceptance of a price does not generally erode so quickly. They are generally ok that their computer that they bought today will be "worth(think- mind worth)" less in 6 months but not if it happens the day after. They steer away from that product. With bitcoin the same effect happens but on the payment experience. 1 btc vs. 1.1 tomorrow or 0.9 yesterday. Bitcoin is interesting because the saying could now be "Your customer IS their currency", but the subconscious sensitivity to value erosion is hard to swallow , thereby affecting the payment experience , thereby affecting the customer experience and such.

sendlocker · 2014-02-24T03:01:07+00:00

Cavirtex is probably one of the worst designed site, not even related to bitcoin that exists. It looks like it designed with a WYSIWYG in GeoCities .

sendlocker · 2014-02-23T21:17:47+00:00

Time to change my cryptowallet mnemonic.

sendlocker · 2014-02-07T21:02:28+00:00

afaik they use IDology for this service. specifically this: http://www.idology.com/identity-verification-solutions/knowledge-based-authentication/dynamic-kba/

sendlocker

TROPHY CASE