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You'd use our platform! User A sends local currency to User B's fiat account. User B sends stablecoins (earned via salary, trading, mining, etc.) to User A's

You'd use our platform! User A sends local currency to User B's fiat account. User B sends stablecoins (earned via salary, trading, mining, etc.) to User A's digital wallet (that we've created for them).

thaumasiotes 2y ago
Assuming you get banned, is your plan just "never visit any country where we do business"?
- Shasnani 2y ago
  Hahaha we've had this conversation internally a couple of times. Definitely a few places that we'd probably avoid. But also plenty of others (e.g., Kenya, LatAm, Turkey, etc.) that have been quite friendly and would be fine to visit.
goatsi 2y ago
Does user B need any sort of exchange/money transmitter license? Do you check the laws for this in each country you are available in? Do you notify user B of this fact and the potential legal risks? Do you verify if they have the license?
- Shasnani 2y ago
  User B is sending a peer-to-peer transaction, akin to a Zelle or Venmo. In most other countries, these peer-to-peer payments (PIX, UPI, etc.) do billions of transactions per month. And since you're sending your own funds, you're not a money transmitter. If we do work with any larger entities (e.g., an OTC desk, liquidity provider), we'd certainly be cognizant of the relevant licensing.
  - pigeons 2y ago
    > And since you're sending your own funds, you're not a money transmitter. It's MUCH more complicated than that in several countries, particularly the US.
threeseed 2y ago
And what are the legal implications for User B. Because if you are involved in washing illegally earned money in many places that's a criminal act.
alwa 2y ago
How do you demonstrate that User B earned their stablecoins via “salary, trading, mining, and etc.”; as opposed to through crime, whether the conventional crypto sort or through subverting currency controls? What, other than money laundering, would motivate a person who had a supply of such stablecoins to want to supply them to into a market with currency controls? Is the concept there “I make my expat wages in dollars, I want to turn them back into $CURRENCY at the black market rate”?

thaumasiotes 2y ago

Assuming you get banned, is your plan just "never visit any country where we do business"?

Shasnani 2y ago
Hahaha we've had this conversation internally a couple of times. Definitely a few places that we'd probably avoid. But also plenty of others (e.g., Kenya, LatAm, Turkey, etc.) that have been quite friendly and would be fine to visit.

goatsi 2y ago

Does user B need any sort of exchange/money transmitter license? Do you check the laws for this in each country you are available in? Do you notify user B of this fact and the potential legal risks? Do you verify if they have the license?

Shasnani 2y ago
User B is sending a peer-to-peer transaction, akin to a Zelle or Venmo. In most other countries, these peer-to-peer payments (PIX, UPI, etc.) do billions of transactions per month. And since you're sending your own funds, you're not a money transmitter. If we do work with any larger entities (e.g., an OTC desk, liquidity provider), we'd certainly be cognizant of the relevant licensing.
- pigeons 2y ago
  > And since you're sending your own funds, you're not a money transmitter. It's MUCH more complicated than that in several countries, particularly the US.

threeseed 2y ago

And what are the legal implications for User B. Because if you are involved in washing illegally earned money in many places that's a criminal act.

alwa 2y ago

How do you demonstrate that User B earned their stablecoins via “salary, trading, mining, and etc.”; as opposed to through crime, whether the conventional crypto sort or through subverting currency controls? What, other than money laundering, would motivate a person who had a supply of such stablecoins to want to supply them to into a market with currency controls? Is the concept there “I make my expat wages in dollars, I want to turn them back into $CURRENCY at the black market rate”?