3 ms·

If you guys are not a registered Money Service Business you should stop ASAP. What your doing sounds like a jailable offense. See the local bitcoin guy who we

by loourr 9y ago

If you guys are not a registered Money Service Business you should stop ASAP. What your doing sounds like a jailable offense. See the local bitcoin guy who went to prison for selling bitcoin in Florida.

dragonwriter 9y ago
Being a registered MSB probably won't stop you for going to prison for running an illegal lottery.
joshstrange 9y ago
My thoughts exactly, without a MTL (Money transmitting License) it seems like this runs afoul of a number of things including KYC. For the record MTL's for all 50 states will run you 6-12 months and ~300K when insurance, lawyer fees, and application fees are through (That's for the first year, subsequent years are cheaper but still).
- pfarnsworth 9y ago
  They don't need an MTL because they're not transmitting money to another party or holding the money, they're just transmitting the money back to the original party. However, it does seem like they are running afoul of other parts of regulations, like KYC and money laundering.
  - joshstrange 9y ago
    Ahh, thank you for clearing that up. I was recently looking into starting a business that required an MTL and knew WE needed one but wasn’t completely sure about what qualified for other companies.
exhilaration 9y ago
See the local bitcoin guy who went to prison for selling bitcoin in Florida. Wait, selling bitcoin in one the many bitcoin meetups around the U.S. is illegal?
- vkou 9y ago
  If I wire you some bitcoins for a suitcase full of cash, do you think that there may be some, ah, regulatory problems in this exchange? What if I wire your bank account money in exchange for said suitcase of cash? What if I'm a bank that credits your account, in exchange for said suitcase of cash, no questions asked? (This is precisely what KYC laws exist to prevent.)
- loourr 9y ago
  Yes technically it is. It would also be illegal to give someone Euros for USD so there are practical thresholds here that need to be crossed before anyone is going to press charges, but doing it regularly is definitely something that puts you at risk.

by loourr 9y ago

dragonwriter 9y ago

Being a registered MSB probably won't stop you for going to prison for running an illegal lottery.

joshstrange 9y ago

My thoughts exactly, without a MTL (Money transmitting License) it seems like this runs afoul of a number of things including KYC. For the record MTL's for all 50 states will run you 6-12 months and ~300K when insurance, lawyer fees, and application fees are through (That's for the first year, subsequent years are cheaper but still).

pfarnsworth 9y ago
They don't need an MTL because they're not transmitting money to another party or holding the money, they're just transmitting the money back to the original party. However, it does seem like they are running afoul of other parts of regulations, like KYC and money laundering.
- joshstrange 9y ago
  Ahh, thank you for clearing that up. I was recently looking into starting a business that required an MTL and knew WE needed one but wasn’t completely sure about what qualified for other companies.

exhilaration 9y ago

See the local bitcoin guy who went to prison for selling bitcoin in Florida. Wait, selling bitcoin in one the many bitcoin meetups around the U.S. is illegal?

vkou 9y ago
If I wire you some bitcoins for a suitcase full of cash, do you think that there may be some, ah, regulatory problems in this exchange? What if I wire your bank account money in exchange for said suitcase of cash? What if I'm a bank that credits your account, in exchange for said suitcase of cash, no questions asked? (This is precisely what KYC laws exist to prevent.)
loourr 9y ago
Yes technically it is. It would also be illegal to give someone Euros for USD so there are practical thresholds here that need to be crossed before anyone is going to press charges, but doing it regularly is definitely something that puts you at risk.