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I agree. Have these guys done any legal due diligence on any of this? Any lawyers care to chime in? I thought you couldn’t do this in many states without a mone

I agree. Have these guys done any legal due diligence on any of this? Any lawyers care to chime in? I thought you couldn’t do this in many states without a money transmitter license. Also, does this constitute financial advise? That’s also a big no no in the USA. The CoinTracker guys (current yc batch who make an app for tracking crypto) mentioned that as a reason for not offering a portfolio management product right out of the gate. Also doesn’t stripes terms of service basically prohibit this? I bring this up because in the interview they say the following: “What platform/tools do you use for your business? Stripe for payments” This is what Stripes TOS says: “By registering with us, you are confirming that you will not use the Service to accept payments in connection with the following businesses, business activities or business practices.” “Virtual currency that can be monetized, resold, or converted to physical or digital products and services or otherwise exit the virtual world (e.g., Bitcoin); sale of stored value or credits maintained, accepted and issued by anyone other than the seller ” https://stripe.com/ca/prohibited-businesses https://stripe.com/ca/prohibited-businesses I think this is a cool idea, I’m just not sure if they are going about it in a compliant way. If they are doing the right thing they should stick a FAQ up on their launch page ASAP. Assuming they are doing this legally I’d also love to know how they are handling taxes when they buy these 100 currencies. I.e when you buy alts using eth/btc that’s a taxable event. How do they factor that into the pricing.

throw9991999 9y ago
Kind of a bummer that none of the mainstream payment processors allow crypto related businesses on their platforms. Which banks have no issue dealing with crypto related businesses? Anyone know what banking partners Coinbase, Gemini, Bitpay etc use?
- ceejayoz 9y ago
  > Kind of a bummer that none of the mainstream payment processors allow crypto related businesses on their platforms. Surely you're not surprised? Credit card chargebacks make it virtually guaranteed that widespread fraud would occur.
s73v3r_ 9y ago
"Have these guys done any legal due diligence on any of this?" Something, something, move fast and ask for permission later.
- jklein11 9y ago
  In all seriousness, what is the worst that could happen to these guys?
  - brownbat 9y ago
    "In more extreme situations, taxpayers could be subject to criminal prosecution for failing to properly report the income tax consequences of virtual currency transactions. Criminal charges could include tax evasion and filing a false tax return. Anyone convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000. Anyone convicted of filing a false return is subject to a prison term of up to three years and a fine of up to $250,000." https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-report-virtual-currency-transactions https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-report... I'm not their or your lawyer and this isn't advice it is just one among what I assume are many possible examples of penalties that have been asserted for those who are messing around with coins without really thinking them through. I don't know who is doing their taxes or legal prep, maybe they've got this all covered, who knows. UPDATE: They reply in another comment that they've been advised to avoid US sales for the time being. Makes sense.

throw9991999 9y ago

Kind of a bummer that none of the mainstream payment processors allow crypto related businesses on their platforms. Which banks have no issue dealing with crypto related businesses? Anyone know what banking partners Coinbase, Gemini, Bitpay etc use?

ceejayoz 9y ago
> Kind of a bummer that none of the mainstream payment processors allow crypto related businesses on their platforms. Surely you're not surprised? Credit card chargebacks make it virtually guaranteed that widespread fraud would occur.

s73v3r_ 9y ago

"Have these guys done any legal due diligence on any of this?" Something, something, move fast and ask for permission later.

jklein11 9y ago
In all seriousness, what is the worst that could happen to these guys?
- brownbat 9y ago
  "In more extreme situations, taxpayers could be subject to criminal prosecution for failing to properly report the income tax consequences of virtual currency transactions. Criminal charges could include tax evasion and filing a false tax return. Anyone convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000. Anyone convicted of filing a false return is subject to a prison term of up to three years and a fine of up to $250,000." https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-report-virtual-currency-transactions https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-report... I'm not their or your lawyer and this isn't advice it is just one among what I assume are many possible examples of penalties that have been asserted for those who are messing around with coins without really thinking them through. I don't know who is doing their taxes or legal prep, maybe they've got this all covered, who knows. UPDATE: They reply in another comment that they've been advised to avoid US sales for the time being. Makes sense.