Suggestion: This could be your new business model. MtGox only clears trades, funding is done by other companies.

MtGox charges a flat .001 btc fee per trade. For every 10,000 coins cleared on the exchange, MtGox gets 10 coins. Not getting super rich with that.

Now, someone could start a business called 'BitcoinFunding.com' send you a check/wire for $10,000 and then sell off that interest using paypal, pokerstars money, whatever they like. Any clients they bring in are BitcoinFunding clients, and any funding issues/chargebacks are BitcoinFundings problem, not MtGox. Then let BitcoinFunding charge their own commission table, say it is 0.009 per coin. Total coin cost is 0.010 per coin to customer.

BitcoinFunding would have their own website, own graphs, own quote service, come up with an iPhone app, etc.

That is the same model Liberty Reserve uses. The way to get other currencies in and out is through exchangers not LR itself.

They can use any number of things. A utility bill with your name and address on it,a passport,a drivers license,a phone call.

There are no bitcoin exchangers that go that far yet. I think cash in the mail is the only real solution if you dont have stringent customer verification enabled.
 
http://www.greenid.com.au/  is one used down here by some sites.

I guess it depends if you want to follow the lessons of sites who got ripped off or not.

Hawala used to be set up entirely on trust, usually through families.

Today settlement can be immediate through bullion banks like GoldMoney or Anglo Far East.

The idea that the collective US tyrant can outlaw hawala shows what they don't know.

What happens if someone turns out to be a crook which is authenticated?

Begin prosecution? On what grounds? And if the scammer from another country?

Ok I've given up the search and started integrating Liberty Reserve.
You can now add payments with LR.
I'm doing withdrawals manually for now.
ExchangeZone.com seems the best place to buy and sell LR since you can do it with out the crazy commission the other exchangers charge.
Please email me if you have issues.

So MtGox, now that you given up on finding a suitable withdrawal method....


What do you have planned for MtGox in the future?

mtgox: So what have you given up on?  Are you still trying to support ACH?

So now the big question is: Will mtgox back MTGUSD with LRUSD 1:1 less fees? In other words, will I be able to withdraw the "USD" from my Mt Gox account into my LR account at a fixed 1:1 rate? Or will the rate be market-determined (i.e. a third tradeable currency at Mt Gox)? If the latter, and if there will never be a way to directly withdraw our existing MTGUSD except by trading to LRUSD first within Mt Gox with another Mt Gox user, then MTGUSD will become worthless. If mtgox is offering direct withdrawal of MTGUSD as LRUSD without trading first, then MTGUSD will be fine.

But I am still concerned about PayPal possibly never giving back the stolen (ok, "frozen") funds. If therefore there is not enough liquid funds backing up all MTGUSD, without mtgox dipping into personal funds, there's a possibility of a "bank run" on MTGUSD.