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this post was submitted on 27 Oct 2023
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There are plenty of online banks that do all the stuff people want. So good luck with that. And enjoy all the hideously complex finance regulation & legal obligations that varies from one location to another.
Even Apple with its $165 billion cash reserves opted out of becoming a bank to create the Apple Card. They have Goldman Sachs to do the banky stuff. I can't imagine trying to do this with X's resources.
He plans to ignore those regulations, quite obviously. He's been ignoring laws and regulations in every company he touches. There'll be about a month where a whole lot of people get scammed/lose access to their funds due to his mismanagement, then the federal government (as well as some state governments and at least a few other national governments) will threaten to shut him down. Then he'll make some token gesture to obey the law. The government will back off, but the new platform will collapse anyway and he'll quietly pull the plug, hoping it won't show up in a news cycle.
Interesting tension there between "rich white assholes are above the law" and "don't fuck with rich people's money".
SBF found himself on the wrong side of that one...
He emulated a crypto version of bank and hedge fund, but for some reason failed to see that he had to stay solvent when the FED can't save him.
Yup, and he will either use all the cash that people throw at him to run a stock scam or crypto scam agaim and hope to keep those profits by the time people come for the money.
It's like he's running a short against all of his own followers. Tactics like a scummy scam artist. A pyramid scheme without the pyramid....
It's insane what influence actually will buy you if you have enough of it.
Most of those online only banks subcontract out the banking part to a real bank
I have a Revolut account and they're an actual bank these days in the EU but not a bank in other places like the UK where they're still waiting for a licence. N26 is also a proper bank in Europe. I wouldn't like to use an online bank which is not a bank since if the platform collapses then you have no guarantees on your personal savings and the platform could be doing all kinds of unregulated shady shit.
I should mention that while Revolut is a bank now, I sometimes get grief with it. e.g. I went to collect a car rental in the UK and the desk point blank refused the my Revolut card exclaiming it's a prepaid card when it was actually a Mastercard Debit, a world elite one no less. Didn't do me any good to argue though because they had some dumb rule and they stuck to their guns. If they had used their own eyes or stuck the card in the reader they could have seen what the card was but nope, policy meant they had to refuse it.