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I thought that was possible but it's inconsistent with everything else I know. I think it's the reporter's misunderstanding of what a money transmission license

I thought that was possible but it's inconsistent with everything else I know. I think it's the reporter's misunderstanding of what a money transmission license is, though I'm happy to be corrected if anyone can find proof that a BitLicense suddenly shifted from being a modified MTL to a bank charter after the comment period... It seems like the FDIC would have a lot to say about that; also it would be totally insane to start handing out state bank charters to virtual currency operators when typical money transmitters don't qualify due to their [much lower] risk profile.

PierreRochard 11y ago
See here: http://www.dfs.ny.gov/about/press2015/pr1505071.htm http://www.dfs.ny.gov/about/press2015/pr1505071.htm
- thinkcomp 11y ago
  This definitely raises more questions than it answers. Can a typical money transmitter just pretend to handle Bitcoin as well and magically exempt itself from the state money transmission framework? Do other states consider this kind of trust company to be a bank or a money transmitter? What does FinCEN think?
  - reviseddamage 11y ago
    >>Can a typical money transmitter just pretend to handle Bitcoin as well and magically exempt itself from the state money transmission framework? It has restrictions and depending on how the Trust was constructed, it may not be applicable in other states for certain transmission activities. >>Do other states consider this kind of trust company to be a bank or a money transmitter? They evaluate what the Trust was built for,and what the company wants to do in their state, and evaluate whether there is a delta or overlap. >>What does FinCEN think? no diff, still have BSA/AML obligations and commitments.
reviseddamage 11y ago
The problem is that a Trust Company does have properties that require it not to have MTL's, but it also is restricted in few areas, such as custody to custody movement. Getting a Trust charter is not easy, there is no worry of it being handed out like free candy. I think you will find companies getting Trust charters, only to realise that there are certain things it can not functionally do.

PierreRochard 11y ago

See here: http://www.dfs.ny.gov/about/press2015/pr1505071.htm http://www.dfs.ny.gov/about/press2015/pr1505071.htm

thinkcomp 11y ago
This definitely raises more questions than it answers. Can a typical money transmitter just pretend to handle Bitcoin as well and magically exempt itself from the state money transmission framework? Do other states consider this kind of trust company to be a bank or a money transmitter? What does FinCEN think?
- reviseddamage 11y ago
  >>Can a typical money transmitter just pretend to handle Bitcoin as well and magically exempt itself from the state money transmission framework? It has restrictions and depending on how the Trust was constructed, it may not be applicable in other states for certain transmission activities. >>Do other states consider this kind of trust company to be a bank or a money transmitter? They evaluate what the Trust was built for,and what the company wants to do in their state, and evaluate whether there is a delta or overlap. >>What does FinCEN think? no diff, still have BSA/AML obligations and commitments.

reviseddamage 11y ago

The problem is that a Trust Company does have properties that require it not to have MTL's, but it also is restricted in few areas, such as custody to custody movement. Getting a Trust charter is not easy, there is no worry of it being handed out like free candy. I think you will find companies getting Trust charters, only to realise that there are certain things it can not functionally do.