After going through a turmoil period contesting against the US government and the Anti-Money-Laundering Rules, Mt. Gox, a Tokyo based Bitcoin exchange is reportedly trying to comply with the governmental rules and regulation. The news has come that this week Mt. Gox registered as a money services business with the Treasury Department’s Financial Crimes Enforcement Network.
Thus, Mt. Gox that handles nearly 80% of all trading in Bitcoin is trying to get legitimacy from the government. It is quite interesting that it has already got social legitimacy from the people who support it wholeheartedly but there are some glitches with the US government which considers it a threat to Dollar and a tool for contraband activities like drug & arm smuggling which according to them is being done using Bitcoin.
The US government wants to put Bitcoin exchanges on the radar so that its abuses are ruled out and in that regard Mt. Gox even initiated efforts to beef up its identification procedures for users who deposit or withdraw traditional currencies. It will help the authorities know the state of Bitcoin and stop money laundering.
Now, customers will need to submit a valid photo ID and proof of residence e.g. a utility bill or tax return or others before opening an account. To speed up the process, Mt. Gox has doubled its verification support staff and is all set to help Bitcoin become a mainstream currency accepted and traded by banks and financial organizations.
Several financial experts also opine that even now Bitcoin is not being considered by several banks and financial organization for various obvious reasons; however, with the new step on the part of Mt. Gox, they envision that the idea of Bitcoin may mature early. Though the compliance with the Treasury laws will mean a lot of regulation, it will definitely bring the currency to the mainstream.