4 ms·

Further to my response to a comment stating that this does not fall foul of AUSTRAC's requirements, I think it does break the law with respect to the Corporatio

Further to my response to a comment stating that this does not fall foul of AUSTRAC's requirements, I think it does break the law with respect to the Corporations Act's requirements for an Australian Financial Services License (AFSL)... http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Licensing http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Licensing "An Australian financial services (AFS) licence authorises licensees to: 1 provide financial product advice to clients; 2 deal in a financial product; 3 make a market for a financial product; 4 operate a registered scheme; 5 PROVIDE A CUSTODIAL OR DEPOSITORY SERVICE; 6 provide traditional trustee company services." I think you are performing #5 above, therefore are breaking the law by operating without an AFSL (if you do have an AFSL, the license number should be displayed on your website). Plus consider the Electronic Funds Transfer Code of Conduct... http://www.asic.gov.au/asic/asic.nsf/byheadline/Electronic+Funds+Transfer%3A+Code+of+Conduct?openDocument http://www.asic.gov.au/asic/asic.nsf/byheadline/Electronic+F... Not trying to rain on your parade, just making sure you are aware of the relevant laws you (may) be breaking!

zhoutong 13y ago
I can't see how Bitbillpay is remotely a custodial or depository service. No dollar ever changes hands (I pay your bills with my credit card, and you pay me in Bitcoin). Australia Post also explicitly allows "third party bill payments" in their terms of service.
- blinker21 13y ago
  and then the only person who can do a charge-back if required is you...
- maxden 13y ago
  What if there is a delay between receiving the bitcoin to doing the payment, for example if the payment gateway is down? Would that imply custodial or depository service?
  - zhoutong 13y ago
    Definition of "custodial or depository service": http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s766e.html http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/... There's nothing remotely similar. The Bitcoin payment is not an arrangement nor a financial product. It's not held in trust either.
    - maxden 13y ago
      Thanks for the link. I wouldn't want to rely on my interpretation of reading that Act to keep myself out of trouble! There are so many links that go to fairly unhelpful definitions such as 'when used in a provision outside Chapter 7, has the same meaning as it has in Chapter 7.' So it's not a settlement facility etc, it seems exepmt from these if it's not considered a financial product? Out of interest, do you know what a similar service that accepted AUD instead would be classified under?

zhoutong 13y ago

I can't see how Bitbillpay is remotely a custodial or depository service. No dollar ever changes hands (I pay your bills with my credit card, and you pay me in Bitcoin). Australia Post also explicitly allows "third party bill payments" in their terms of service.

blinker21 13y ago
and then the only person who can do a charge-back if required is you...
maxden 13y ago
What if there is a delay between receiving the bitcoin to doing the payment, for example if the payment gateway is down? Would that imply custodial or depository service?
- zhoutong 13y ago
  Definition of "custodial or depository service": http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s766e.html http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/... There's nothing remotely similar. The Bitcoin payment is not an arrangement nor a financial product. It's not held in trust either.
  - maxden 13y ago
    Thanks for the link. I wouldn't want to rely on my interpretation of reading that Act to keep myself out of trouble! There are so many links that go to fairly unhelpful definitions such as 'when used in a provision outside Chapter 7, has the same meaning as it has in Chapter 7.' So it's not a settlement facility etc, it seems exepmt from these if it's not considered a financial product? Out of interest, do you know what a similar service that accepted AUD instead would be classified under?