If Joe Blow rents a $20/mo. VPN and opens up the "First Federated Bank of Joblovia", chances are he isn't going to be able to take a whole lot of wire transfers to his Bank of America account before the feds move in and shut him down. In fact this is basically what happened to some of the earliest Bitcoin exchanges who were less sophisticated with how they moved currency in and out; guys like Jered from Tradehill used their personal bank accounts to take money from people, and gave them Bitcoins online. The cashflow problems and subsequent collapse stemmed more from the constant shutdown of bank accounts than from the "misunderstanding" with Dwolla as to the nature of Dwolla's chargeback policy. I think.

In any case, Bitcoin offers the ability to do exactly this: Open a completely unregulated financial institution with no accountability. Looking at this site, the first question in my head was "Where are your coins stored?" Second was, "What are the limits, and how, exactly, do you guarantee funds will transmit since every country in the world has different limits, regulations and KYC disclosures required to make that possible?"

The answer for Bitcoin businesses thus far has mostly been "don't worry about it". In Bitcoin that's slang for "I'm using my bank account, my buddy's bank account, my girlfriend's bank account...and I swear you'll get your money on time until you don't, and I'm gone, and you're fucked."

This looks to be yet another one. No news here.