Hi stackers,
I believe there's a good opportunity for a Bitcoin remittance company in my region. I don't see any bigger players expanding here anytime soon.
How would I go on in terms of building a remittance company in terms of technicalities and legalities? Just looking to collect some points and ideas from anyone who can contribute so that I can expand my train of thoughts.
In terms of operations / technicalities, what's the best way for a normie to buy BTC in US for example and send it abroad? I am still failing to understand the best method to do so in terms of fees, ease of use, and speed. For example, how does Strike do that in the backend?
In terms of regulations, besides tax considerations for US residents, what else should considered?
Any thoughts and shit posting are welcome!
Uh so US based right? I think you'd need a money transmitter license. Uh, probably want the whole thing set up by a lawyer. Maybe https://www.legalzoom.com/ could help you? I don't really know just giving this my best shot here.
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I think this might be beyond their capabilities. I was just looking into Charlie Schrem's legal problems with bitinstant, and CZ's mess. The whole money transmitter license process is a nightmare.
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Gave it my best shot XD
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Yeah. Honestly I don't think even the best lawyer a money could buy could wade through the bureaucratic bullshit which is placed there intentionally. As George Carlin said: "It's a big club, and you're not in it."
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Money transmitter license? It is just some random numbers! 😅 Now seriously, for that purpose, is it considered money? Or property?
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You can do it without a license (under the table) but you'd set yourself up for a huge regulatory headache down the road and you would negatively affect user adoption..
It could be as easy as giving senders a gateway or clear instructions to buy from onramps in US and withdrawing to the receiver's wallet. Then the receiver would sell it p2p in the local market with your assistance. But not scalable, high fees, and an unpleasant experience overall..
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Just use Bitcoin and do not touch fiat. Done.
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That's the plan but sometimes reality gets in the way, for example swapping bitcoin to stable shitcoins, else normies would stick with Western Union😅
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Focusing on pilling people rather than putting them back into fiat is the way.
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Wow, true words, right here!
FIAT DELENDA EST!
Once you are in Bitcoin, NEVER EVER go back to fiat. Is so fucking simple, damn it.
What you want to do is creating another Paypal over BTC/LN... that is just what is doing Strike (aka a shit service that keep people into fiat).
Our biggest challenge was by far regulatory. Investors wanted us to be US incorporated, since that's the standard. But US money transmitter licenses are impossible. Our most realistic option would have been using someone like Prime Trust, such that we could piggy back on their licenses. Starting costs for those types of services where $20,000/month. And even at such high prices, you'd still get rugged/shut down by them.
Best approach in hindsight would be waiting for stable-coin type inventions on lightning, such that you can offer fiat balance, but only spendable via lightning rails, and your own responsibility is just reliably running a node. Maybe you can hook into bitrefill type services or disposable digital VISA cards, such that new users immediately know they have somewhere to spend their sats.
Then again, lightning adoption is mad. I'm from a seaside retirement town, and already have a barber, taxi, pizzaguy, gym coach, and cafe all paid for via lightning. Maybe we really don't need fiat rails to be a valid product, especially when Revolut etc add lightning rails.
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Very insightful, appreciate it.
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All the best and good luck!
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Such a concept is literally useless. You don’t need a remittance company, to take middleman fees. Just send the bitcoin directly.
Am I missing something?
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You don't need it in a hyperbitcoinized world where most people (including seniors) know how to deal with bitcoin and have the possibility to spend it easily on products and services, etc. Until then, I still find bitcoin remittances a much needed application.
Context matters here as I am talking about a hyperinflated third world country that runs mostly on remittances from expats with senior population who isn't tech savvy..
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No offense, but ‘non tech-savvy’ senior populations will have just as hard of a time learning to use a remittance app as they would understanding how to set up a Trezor wallet.
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In both cases, they will need someone to hold their hand through the whole process. Why not just skip the middleman?
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If you buy a Trezor wallet, their software literally makes it easy to send bitcoin to any address.
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You just need to get a mentor/coach from the strike team so it will be easy building
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