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> Assuming federal laws don't apply because you sprinkled some magic around you is a pretty awful way to end up in jail. AML/KYC apply to institutions that app

> Assuming federal laws don't apply because you sprinkled some magic around you is a pretty awful way to end up in jail. AML/KYC apply to institutions that apply for Money Service Business licenses, MSBs for short. This is promulgated by FinCEN agency of the US Treasury department. FinCEN has comprehensive definitions of what kind of digital currency use is subject to MSB registration. It is easy for digital currency to other digital currency exchangers to be exempt from those regulations, via one of the codified exemptions, because your straw man argument about federal laws not applying wasn't the argument I was making at all. So now that we've established that, let me know if you want to discuss the something closer to reality.

JumpCrisscross 9y ago
> AML/KYC apply to institutions that apply for Money Service Business licenses MSBs have KYC requirements. It does not follow that non-MSBs have no KYC requirements. FINRA-member firms, for example, are not MSBs and have strict KYC rules [1]. FinCEN has nowhere said that non-MSBs are exempt from KYC. Nobody can competently say that. All American businesses are subject to the minimum threshold of KYC responsibility in coöperating with OFAC restrictions [2]. [1] http://www.finra.org/industry/notices/11-02 http://www.finra.org/industry/notices/11-02 [2] https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_general.aspx https://www.treasury.gov/resource-center/faqs/Sanctions/Page... Disclaimer: I am not a lawyer. This comment does not constitute legal nor investment advice.
- ringaroundthetx 9y ago
  FinCEN wouldn't be the agency to say non-MSBs are exempt from KYC. There may be a kind of FINRA member firm that is both regulated by the SEC and not an MSB, but many kinds, such as broker-dealers are regulated by both FINRA and the SEC and subject to the source you linked. Yes, OFAC is a different discussion with different considerations.

JumpCrisscross 9y ago

> AML/KYC apply to institutions that apply for Money Service Business licenses MSBs have KYC requirements. It does not follow that non-MSBs have no KYC requirements. FINRA-member firms, for example, are not MSBs and have strict KYC rules [1]. FinCEN has nowhere said that non-MSBs are exempt from KYC. Nobody can competently say that. All American businesses are subject to the minimum threshold of KYC responsibility in coöperating with OFAC restrictions [2]. [1] http://www.finra.org/industry/notices/11-02 http://www.finra.org/industry/notices/11-02 [2] https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_general.aspx https://www.treasury.gov/resource-center/faqs/Sanctions/Page... Disclaimer: I am not a lawyer. This comment does not constitute legal nor investment advice.

ringaroundthetx 9y ago
FinCEN wouldn't be the agency to say non-MSBs are exempt from KYC. There may be a kind of FINRA member firm that is both regulated by the SEC and not an MSB, but many kinds, such as broker-dealers are regulated by both FINRA and the SEC and subject to the source you linked. Yes, OFAC is a different discussion with different considerations.