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A business that buys/sells gift cards for Bitcoin is a bit of a grey area I think, but I'm absolutely sure that FinCEN considers exchanging Bitcoin for alts to

A business that buys/sells gift cards for Bitcoin is a bit of a grey area I think, but I'm absolutely sure that FinCEN considers exchanging Bitcoin for alts to be money transmission, regardless of the amount involved, and once they catch up with the technology, they'll start looking to make a precedent. And yes, these businesses will simply take place outside of the U.S., taking all those jobs with them.

deleted 13y ago
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asveikau 13y ago
I have not looked into these details being discussed at all, but the "sending jobs elsewhere" angle sounds nutty. I have to assume that money transfers are also regulated in the places you're thinking of, especially if it is a developed country or a desirable place to live. I mean, you can't reasonably expect to just set yourself up as a bank without jumping through a few hoops.
- eric_bullington 13y ago
  You realize that some of the largest Bitcoin businesses, such as the now defunct Trade Hill, and the still operating moneero, have moved overseas to more open Latin American economies, right? Uraguay and Costa Rica seem like pretty nice places to live. These businesses employ/have employed dozens of people, and that could easily grow to hundreds. Also, by shutting out any chance of an complying American exchange, we de facto sent jobs to Bitstamp in Slovenia, which is growing in to a very nice-sized business, I hear.
jaegerpicker 13y ago
That's not really happening. All of the major egifting (bitcoin accepting or just selling gift cards e or otherwise) startups with traction are located in the US. CashStar, gyft, gift tango, and transaction wireless all US based.
- eric_bullington 13y ago
  I was referring to companies classified as "money transmitters". Being classified as a seller of prepaid access, like gift cards, was actually the best outcome I could have hoped for. And I personally think gyft is skirting the line and may well find itself in some hot water. I love them as a company, though.
  - eric_bullington 13y ago
    I looked deeper into gyft's business model and I was wrong, so I retract the statement above. I don't think they're engaging in money transmission. Apologies to gyft, they're a great company.

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asveikau 13y ago

I have not looked into these details being discussed at all, but the "sending jobs elsewhere" angle sounds nutty. I have to assume that money transfers are also regulated in the places you're thinking of, especially if it is a developed country or a desirable place to live. I mean, you can't reasonably expect to just set yourself up as a bank without jumping through a few hoops.

eric_bullington 13y ago
You realize that some of the largest Bitcoin businesses, such as the now defunct Trade Hill, and the still operating moneero, have moved overseas to more open Latin American economies, right? Uraguay and Costa Rica seem like pretty nice places to live. These businesses employ/have employed dozens of people, and that could easily grow to hundreds. Also, by shutting out any chance of an complying American exchange, we de facto sent jobs to Bitstamp in Slovenia, which is growing in to a very nice-sized business, I hear.

jaegerpicker 13y ago

That's not really happening. All of the major egifting (bitcoin accepting or just selling gift cards e or otherwise) startups with traction are located in the US. CashStar, gyft, gift tango, and transaction wireless all US based.

eric_bullington 13y ago
I was referring to companies classified as "money transmitters". Being classified as a seller of prepaid access, like gift cards, was actually the best outcome I could have hoped for. And I personally think gyft is skirting the line and may well find itself in some hot water. I love them as a company, though.
- eric_bullington 13y ago
  I looked deeper into gyft's business model and I was wrong, so I retract the statement above. I don't think they're engaging in money transmission. Apologies to gyft, they're a great company.