If we're legal and COM/ORG/NET land doesn't have a problem, then why?

Why not? If you are legal you have no problem being o ntor 

Interesting.

So, just to make sure I am getting this right.  When you go to the link you provided, the link that actually pops up in the URL bar is now "your" personal URL/wallet?  I have never used instawallet before, this looks pretty cool.  

The part I don't understand fully though is the mixing part.  It says they are mixed everyday regardless on the website?  So you would only pay extra if you wanted your coins "washed" immediately or something?

If you don't mind me asking, how do you plan on generating profit from this?  

OK.  Makes sense.  So, I haven't been in the BTC community for long, I probably have some dumb questions.

a)  Since the user doesn't have control of the wallet.dat file, where is this thing actually located?  Like for instance, can your website just shut down and then the user doesn't have access to funds?  Kind of like what happened w/Bitcoinica?

b)  Knowing this, are our deposits (any portion) going into any type of risk associated assets?  Like for instance, you are only keeping 80% of users capital on site, then using the other 20% for proprietary purposes?

c)  If this is the case, then shouldn't users be paid interest on deposits? 

d)  Sorry, that is why I wondered how you planned on generating profit.  If it is solely through bitcoin mixing and you have enough users I guess that would make sense.  I am really more concerned though about the first couple points, but maybe I don't fully understand the process.

Thanks.

I have two questions:

- ¿How are you supposed to laundry bitcoins if only tainted coins owners use your service?
- If you want to mix coins: why perfectly clear bitcoins users should use your service?

Because "If you've done nothing wrong, you've got nothing to hide" is a load of BS. Do you really want your boss (who pays you in bitcoins because we're imagining a hypothetical future in which bitcoins are mainstream) finding out that you're spending your paycheck on porn? Is that the sort of future you really want?

I tried this and it is absolutely awesome! The 3% fee for mixing coins is reasonable too. You send coins to the deposit address provided, then you save the address and can send the coins wherever you like, or mix them for a fee. (FYI: 3% of 16.667 BTC = .5 BTC, the minimum mixing fee.)

Just wanted to point out that we've been operating a similar service for about 7 months now, with the focus on the security, we haven't had a single breach of security, our fees are around 2% (1%-3% randomized, to increase obscurity), and we have a solid user base and thousands of bitcoins going through every day, and volume means a lot in an anonymization service.
www.bitcoinfog.com (a freenet page with some information)
http://fogcore5n3ov3tui.onion (the address you must use, only accessible through Tor)
https://bt.irlbtc.com/view/50037.0 (main discussion topic)

But hey, competition is always good for users, new features get developed faster

I don't see the reasons why people use mixing services, and pay a hefty fee:

- Almost all exchanges tumble their coins to my knowledge
- Almost all web services tumble their coins (this is just easiest way to implement a service, one wallet for all users).
- Silk Road tumbles their coins, etc.
- etc etc

So why pay for laundrying? Laundry service probably provides you coins that someone else wanted to launder previously. So I see no difference to actually just depositing your coins to some random web service, and then withdrawing them after a while. Usually it is fraction of the cost.