I'm not from the U.S. but is this necessary? I mean if the OP is from U.S., does he needs to register as a money transmitter? coz basically what he is trying to do is do a personal trade and as far as I know there are still no law covering this crypto-fiat stuff in the U.S. or am I missing something?
As what I understand from the OP, he's like supplying an amount of bitcoin to a certain guy on a daily basis, so I think it is unnecessary to keep records.
What are the dangers of not keeping the records to a localbitcoin traders?
Do you think the law is going to care if these people know each other? Look at the amounts OP is talking about - $150,000 a month. I'm sure plenty of money launderers go on holiday with the people they serve too. I don't think a judge is going to send them off with 'sorry for wasting your time' because of that.
The dangers of not keeping records are being convicted of pissing all over the law. If you're converting and sending money you are a money transmitter in most of the US. You have to register as such and follow all of the requirements which will include gathering info regarding the person you're receiving and sending money to to combat money laundering.
They might never be investigated unless the money is linked to some form of criminality from an investigation but you're playing with fire regardless and claiming that you didn't know anything about it is commonly accepted as a failed defence.
https://www.coindesk.com/localbitcoins-trader-pleads-guilty-money-transmitter-chargehttps://www.coindesk.com/localbitcoins-users-criminal-charges-floridaOne of the members here felt the full force of this too -
http://www.jmwagner.comWow, if I were to not get a money transmitter license and just receive the money via paypal buy the bitcoin send it to him keep the $250 and if the money is not linked to some form of criminality from an investigation what would happen?
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