Is it illegal to officially exchange [digital] currencies without transaction logs?

Just out of curiosity: When I run a small "real world" money exchange (eg. for foreign cash), I don't have to be a bank and I deal with my customers anonymously. They never ask for any identification.

Most if not all serious online exchangers say they are required by law to log exchanges and even require ID. Why is that? Why can't I just go somewhere, meet the requirements for a small money exchange (whatever that is? obviously I don't have to be a bank!), and provide my customers reliable anonymous money exchange (as long as it's okay with the digital currency providers)?

 

Because of the potential for money laundering to be done through your service.

 

Yes, of course, but what legal background makes it possible for "offline exchangers" NOT to monitor/log transactions while exchanging currencies, while online exchanges have to?

 

I dont think there is anyway to NOT monitor/log transactions, by law you have to, at least in denmark where Im from.

And I dont think USA are softer at that point.

The reason is obvious money laundry, the big O using it to backup there actions. No monitor/log means No control means a heaven for criminal people means Major security hole

 

Well I know of many money exchangers all over the country that exchange currencies. No ID required.