I got a phone response from a representative who points me to this documentation:
http://www.fincen.gov/statutes_regs/guidance/pdf/FIN-2013-G001.pdfThey have also stated that I need to determine whether I qualify as one of the following:
User
Exchanger
Administrator
According to the representative on the phone, if I fall into Categories that are not User, I will be required to create an AML policy and enforce my participatnts to use it.
Looking into details on this form, I see here that both Exchanger and Administrator use this specific language: Engaged As a Business
Furthermore, the Administrator is simply and Exchanger that has the ability or 'authority' to rightfully add or remove units of currency from circulation. (To me this is akin to using the program itself to adjust the hard limit issued either upwards or downard.
I will proceed to attempt defining what constitutes what...I'd love for a lawyer to clarify or point me out if I'm wrong on these assertions (sorry if i muck this one up in advance)
Individual Miner - is not engaged as a business: USER
Individual Miner with 20+ TH distributing bitcoin dividends - not engaged as a business, not converting to local fiat: USER
Exchange that transacts in Alts only - Engaged as a business, not converting to local fiat: USER
Exchange that can transact to USD - Engaged as a business, converting to local fiat: EXCHANGER
Ripple Network - Engaged as a business, Converting to local fiat, ability to add/remove money into the system: ADMINISTRATOR
Localbitcoins.com User who sells more than 10K fiat - Not engaged as a business, converts to local fiat: USER
Localbitcoins.com website/administrator - Engaged as a business, facilitates but doesn't itself convert to local fiat: USER
From the reasoning set forth in the guidelines, unless you are Registered as a Business (such that you are an LLC or an INC that is writing off mining equipment hardware to offset mining earnings Tax revenue liability), AND you provide a service where you Buy and Sell Bitcoins for USD then you are an: EXCHANGER