They are not holding people’s money. That’s the whole point of it. So most of the banking stuff really wouldn’t apply to them.
Now, when it comes to facilitating money transfers, or facilitating forex. Yeah, this they’d need to look into. But the idea seems to be that they’re a P2P marketplace bringing individual sellers and buyers together, but not really touching any of that money themselves.
Sort of like, is Uber a taxi firm? Different jurisdictions see this differently.
It's not a case of stupidity but rather a judge's interpretation of current law as argued by a barrister.
In a very simplified example, accountants have to follow the same tax laws for their clients. Some firms cost _significantly_ more than others because they have an army of lawyers who find legal loopholes that can reduce the tax bill.
Karsa will likely use their YC cash to fund these lawyers in different countries when issues arise. They might decide to stop fighting and close business in that country.
Correct! There's certainly a lot of regulations to navigate, but we are strict about NEVER touching the fiat in any country; just connecting buyers and sellers.
Now, when it comes to facilitating money transfers, or facilitating forex. Yeah, this they’d need to look into. But the idea seems to be that they’re a P2P marketplace bringing individual sellers and buyers together, but not really touching any of that money themselves.
Sort of like, is Uber a taxi firm? Different jurisdictions see this differently.