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How is he a money transmitter? His business is buying a product (Starbucks gift cards) and paying for them with Bitcoin. By your definition, a used car dealersh
by axefrog 13y ago
How is he a money transmitter? His business is buying a product (Starbucks gift cards) and paying for them with Bitcoin. By your definition, a used car dealership that buys cars from the public and pays for them with cash is also a money transmitter.
- JumpCrisscross 13y agoGift cards are more like cash than goods. That is why "Federal tax law does not view giving an employee a turkey or a ham as the equivalent of giving an employee a gift card to purchase a turkey or a ham" [1]. [1] http://www.irs.gov/pub/irs-tege/p_4090_fed_0305_text.pdf http://www.irs.gov/pub/irs-tege/p_4090_fed_0305_text.pdf
- mhluongo 13y agoThat was my thought too, but this is a common reaction so I'm definitely seeking clarification.
- jstalin 13y agohttp://fincen.gov/statutes_regs/guidance/pdf/FIN-2013-G001.pdf http://fincen.gov/statutes_regs/guidance/pdf/FIN-2013-G001.p...
- panarky 13y agoThat link is for "virtual currencies" and here's one for "prepaid access". http://www.fincen.gov/statutes_regs/frn/pdf/Prepaid_Final_7-22-201.pdf http://www.fincen.gov/statutes_regs/frn/pdf/Prepaid_Final_7-... In summary, in the US you must know your customer, have anti-money-laundering procedures, file suspicious activity reports, keep records for law enforcement, etc. Highly regulated.
- rwhitman 13y agoStarbucks gift cards are relatively anonymous, can store varying amounts of money without being suspicious and are easily transferred and sold. They are a fantastic vector for transfering dirty cash
- gamblor956 13y agoHis definition isn't what's relevant--it's the legal definition of "money transmitter" that matters. Under the legal definition, the money transmitter rules can apply to businesses that exchange cash or cash-equivalent goods like gift cards.