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Title: Texas Gets it Right! Post by: windpath on April 08, 2014, 04:49:48 PM Regulatory Treatment of Virtual Currencies Under the Texas Money Services Act
TL;DR: Transfer of Bitcoin in exchange for anything (unless you operate an Exchange Service or certian configurations of an ATM) is NOT money transmission. http://www.dob.texas.gov/lg_manual/sm1037.pdf Quote To provide further guidance, the regulatory treatment of some common types of transactions involving cryptocurrency can be determined as follows. • Exchange of cryptocurrency for sovereign currency between two parties is not money transmission. This is essentially a sale of goods between two parties. The seller gives units of cryptocurrency to the buyer, who pays the seller directly with sovereign currency. The seller does not receive the sovereign currency in exchange for a promise to make it available at a later time or different location. • Exchange of one cryptocurrency for another cryptocurrency is not money transmission. Regardless of how many parties are involved, there is no receipt of money, and therefore no money transmission occurs. • Transfer of cryptocurrency by itself is not money transmission. Because cryptocurrency is not money or monetary value, the receipt of it in exchange for a promise to make it available at a later time or different location is not money transmission. This includes intermediaries who receive cryptocurrency for transfer to a third party, and entities who, akin to depositories, hold cryptocurrency on behalf of customers. • Exchange of cryptocurrency for sovereign currency through a third party exchanger is generally money transmission. For example, most Bitcoin exchange sites, such as the failed Mt. Gox, facilitate exchanges by acting as an escrow-like intermediary. In a typical transaction, the buyer of cryptocurrency sends sovereign currency to the exchanger who holds the funds until it determines that the terms of the sale have been satisfied before remitting the funds to the seller. Irrespective of its handling of the cryptocurrency, the exchanger conducts money transmission by receiving the buyer's sovereign currency in exchange for a promise to make it available to the seller. • Exchange of cryptocurrency for sovereign currency through an automated machine is usually but not always money transmission. For example, several companies have begun selling automated machines commonly called “Bitcoin ATMs” that facilitate contemporaneous exchanges of bitcoins for sovereign currency. Most such machines currently available, when operating in their default mode act as an intermediary between a buyer and seller, typically connecting through one of the established exchange sites. When a customer buys or sells bitcoins through a machine configured this way, the operator of the machine receives the buyer's sovereign currency in exchange for a promise to make it available to the seller. However it is worth noting that at least some Bitcoin ATMs can be configured to conduct transactions only between the customer and the machine's operator, with no third parties involved. If the machine never involves a third party, and only facilitates a sale or purchase of Bitcoins by the machine's operator directly with the customer, there is no money transmission because at no time is money received in exchange for a promise to make it available at a later time or different location. Title: Re: Texas Gets it Right! Post by: franky1 on April 08, 2014, 04:58:09 PM basically if your a intermediary business handling other peoples sovereign money, then you are a transmitter and need to show that you are doing it correctly by being licensed (meaning you have federal insurance against sovereign money loss and have to follow rules on handling it).
individuals and private investors are free to do what they like. great news this should sort out the noobish inexperienced and unqualified people from thinking they can handle millions of dollars of other peoples wealth, simply because they set up a website. it also clarifies what everyone should know. that regulation is just for the sovereign businesses, and does not make bitcoin regulated. Title: Re: Texas Gets it Right! Post by: 5thStreetResearch on April 08, 2014, 05:02:03 PM basically if your a intermediary business handling other peoples sovereign money, then you are a transmitter and need to show that you are doing it correctly by being licensed (meaning you have federal insurance against sovereign money loss and have to follow rules on handling it). individuals and private investors are free to do what they like. great news this should sort out the noobish inexperienced and unqualified people from thinking they can handle millions of dollars of other peoples wealth, simply because they set up a website. it also clarifies what everyone should know. that regulation is just for the sovereign businesses, and does not make bitcoin regulated. Very good news, need to see some other states follow suit now. A federal ruling still voids this though doesnt it? Title: Re: Texas Gets it Right! Post by: zolace on April 08, 2014, 05:04:05 PM So since they got it right I guess everyone from usa can do business in Texas and move to texas lol
Title: Re: Texas Gets it Right! Post by: atp1916 on April 08, 2014, 05:05:15 PM Texas, greatest country in the world.
In contrast, I present you the wonderful prison that is NY. ::) ;D Title: Re: Texas Gets it Right! Post by: bryant.coleman on April 08, 2014, 05:12:40 PM Congratulations to the Texans.... I hope that the supreme court doesn't strike down this regulation saying that it is falling foul of the federal laws on Monetary services.
Title: Re: Texas Gets it Right! Post by: scox on April 08, 2014, 05:13:05 PM Great! BTC <3 Texas and Texas <3 BTC
Title: Re: Texas Gets it Right! Post by: franky1 on April 08, 2014, 05:15:53 PM i do have to say that the Feds have said very similar advice on regulation.. but texas seems to have wrote it in a more laymans terms. instead of political grammar.
so the other states are generally in a similar situation. but atleast one state has it wrote down for the layman to understand Title: Re: Texas Gets it Right! Post by: Nerazzura on April 08, 2014, 05:20:52 PM nice texas!
hope many state in USA will follow ;D Title: Re: Texas Gets it Right! Post by: seriouscoin on April 08, 2014, 05:29:50 PM wow.... texas is way ahead this time.
Fuck you NY.... and your bankers. Title: Re: Texas Gets it Right! Post by: RodeoX on April 08, 2014, 05:32:15 PM Texas - 1
New York - 0 Title: Re: Texas Gets it Right! Post by: bryant.coleman on April 08, 2014, 05:39:26 PM wow.... texas is way ahead this time. Fuck you NY.... and your bankers. Perhaps this is because Texas is a Republican state and NY is a democrat state? Also, Ron Paul, who is one of the biggest supporters of the crypto represents Texas. Title: Re: Texas Gets it Right! Post by: jbreher on April 08, 2014, 06:18:08 PM basically if your a intermediary business handling other peoples sovereign money, then you are a transmitter and need to show that you are doing it correctly by being licensed (meaning you have federal insurance against sovereign money loss and have to follow rules on handling it). individuals and private investors are free to do what they like. great news this should sort out the noobish inexperienced and unqualified people from thinking they can handle millions of dollars of other peoples wealth, simply because they set up a website. it also clarifies what everyone should know. that regulation is just for the sovereign businesses, and does not make bitcoin regulated. For being the guy always decrying 'chinese whispers', I am somewhat puzzled by your analysis. I see nothing in the original (assuming of course that the post before yours is an accurate quote), I see nothing that discerns between business transactions and personal transactions. Or am I misinterpreting your words? Title: Re: Texas Gets it Right! Post by: cbeast on April 08, 2014, 06:41:46 PM There is a large contingent of Bitcoin developers and enthusiasts in the Texas capital of Austin. Kudos to the Bitcoin community and their communication skills. With patients and perseverance, this paradigm shift will go down as smoothly as a bottle of Patron on an El Paso sunset.
Title: Re: Texas Gets it Right! Post by: acoindr on April 08, 2014, 06:45:21 PM Looks good :)
I particularly enjoyed their endnote on sovereign currency: Quote In this memorandum the term sovereign currency will be used to mean government-issued currencies with legal tender status in the country of issuance. In most of the literature pertaining to virtual currency, the term fiat currency is used to refer to government-issued legal tender. Technically, fiat currency is a subset of government-issued legal tender. Fiat currency has no intrinsic value; its value is established by law. By contrast, commodity-backed currency has intrinsic value insofar as it represents a claim on a commodity such as gold or silver. Here, sovereign currency means both commodity-backed and fiat currency issued by a government and designated as legal tender. AHHAHAHAHA GO Texas! Title: Re: Texas Gets it Right! Post by: twiifm on April 13, 2014, 02:05:51 AM Basically Texas says crypto is not money.
Title: Re: Texas Gets it Right! Post by: cbeast on April 13, 2014, 02:18:32 AM Basically Texas says crypto is not money transmission. FTFYTitle: Re: Texas Gets it Right! Post by: bryant.coleman on April 13, 2014, 06:35:27 AM Basically Texas says crypto is not money. Not much of a problem. Anyway they have stated that possession and trade of Bitcoins are not illegal. Looking at the current political situation, this is a very encouraging step for Bitcoin. Title: Re: Texas Gets it Right! Post by: counter on April 17, 2014, 06:44:58 AM Goof them and us for making it more easily understandable for people to understand the laws on the books around BTC. Now if other states will only follow suit this train will get to it's destination in a timely fashion..
Title: Re: Texas Gets it Right! Post by: copychicken on May 01, 2014, 12:38:32 AM if texas was ahead.. it could at least protect its investors.. cointerra is bankrupt... not responding to anyone...owing money,and support to everybody.
that harms btc trust even more..than raising it.... Title: Re: Texas Gets it Right! Post by: sabreezie on May 01, 2014, 09:21:52 AM Does this happen because Texas is represented by Ron Paul, one of the biggest supporters of the crypto currencies?
Title: Re: Texas Gets it Right! Post by: edd on May 01, 2014, 10:53:05 AM Does this happen because Texas is represented by Ron Paul, one of the biggest supporters of the crypto currencies? Ron Paul doesn't currently represent any Texas districts. I think this is more a case of the individuals making these decisions in the Texas DOB having some good sense and taking the time to understand cryptocurrencies before trying to shoehorn them into antiquated categories. |