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RE: Hire 3 Steem Developers to Build USD/Steem Exchange?
The issue is not one of software, it's one of regulation. I could develop a software platform to do this in a few weeks, and I would have already if it was that simple. The difficult issue is regulations in the US. Fincen has classified businesses that buy/sell crypto for money as money transmitters and you not only need to get a national license, you also need to get a money transmitter in every state you do business in.
You are exactly right which is why this proposal explains that SteemJ would not touch any of the money including no escrow. SteemJ then is only a communications tool that makes peer to peer transactions easier without charging any fees. Users set prices and user deal directly with each other while relying on SteemJ to help design which user to trust. Think of it more like a dating app than an exchange where the entire purpose of the app is to connect one person with another. The dating app is not participating in the relationships or responsible for the results of using it.
What I might have done better with is to call it a messaging app instead of an exchange. Thank you very much for making a reply so quickly here and helping us understand what we need to do to get this live!
Note we are planning to do this, but it takes time to get these licenses.
@blocktrades thank you for letting us know you are working on a fiat exchange because we will benefit greatly from having that available! We wish for a smooth process getting the licenses and when fiat is available I will plan to make a tutorial showing how to use it!
One solution could be to have it outside of US jurisdiction to evade all those regulatory problems.
I get it that steemit is a US company, lots of the crypto and blockchain stuff comes from the US, but the real world changing potential of steemit and Steem lies outside of the US, bringing banking to the unbanked masses of developing countries, where people have smartphones but no bank accounts to even transfer fiat to an exchange which lets them change it into crypto.
Instead they are trading cell phone minutes.
So if this exchange is outside of US jurisdiction the US government will probably make it illegal for US citizens to participate but global mass adaption means most of the users will be outside of the US anyway.
So steemit could get an .is domain, Iceland is big on protecting internet freedom of speech and .com domains could be shut down, and the servers could be in Iceland too, because they might be more protected there and electrical energy is cheap and eco.
Good points made, but there are a shitton of legal issues in other countries around the world, too. This is why the current exchanges are only open to a small number of countries. It is impossible to make it fit every jurisdiction in the world. Some problems include taxation, money laundering and money transmission... and this is not even the tip of the iceberg. It is like blocktrades said... If it was that easy, we would already have hundreds of those exchanges in the cryptospace.
Yes those regulations! So we need to find the best possible jurisdiction, or to work around the whole official exchange thing by creating something on peer to peer base and somehow solving the trust issue.
The solution for this is easy: SteemHalo. David Zimbeck years ago created BlackHalo and BitHalo. Take a look at it... it solves the trust issue!
the Idea is really great, this is going tow work for sure,, thouands of Steemians are working online and will accept Steem as payment method fore sure.
but this will take some time to be realized. the most important thing is to build a community that believes in Steemit and Steem in general, this already exists, the next Step is what you mentioned all in the article,, nothing is imposssible,, anything can be achieved.
Is it possible for the steem blockchain to have compatibility with the upcoming atomics swaps that will be soon implemented with other blockchains like Bitcoin, Litecoin etc, such a thing would allow a decentralized exchange, and bypass Fincen (because no dollars on the decentral exchange)
thats the problem, government has a new regulation... crypto currency is booming business, that's why, there eyes is keep tracking on it... we need freedom on crypto...free to buy and sell...but this will not happen, because government is sucksss.
yeah totally agree. This is why there is no fiat-crypto exchange in most countries yet. It's hard to do AML/KYC.
But we can bet this will slowly happen.