[do]

It seems there is a lot of misinformation about this with a lot of SEO bloggers and e-lawyers spewing all kind of contradictory stuff.  Even the statements issued by FinCEN are contradictory with each other.  I hope to clear this up for me and others who trade Bitcoin OTC.  Responses from attorneys or those who work in AML compliance would be great.

I would like to start trading with others through localbitcoins.  If I do will I have to register with FinCEN?  Registration is too capital intensive for me since I hear you need $100k liquid and $1,000 registration fee.  I am going to be very small time and would simply like to help foster local adoption and make a little coin.  I do not want to go to jail or pay $50,000 for a lawyer to save me.  I have read the following:

* You do have to register if you are doing this "regularly"
* You do not have to register if you do it regularly but stay under $999 per day.
* You do not have to register if you keep a single transaction under $10,000.
* You do have to register no matter what if you are making a currency exchange of any kind outside of a registered exchange.

I found this (http://bitcoin.stackexchange.com/questions/12559/legal-issues-banking-issues-selling-bitcoins-to-people-otc) but I am not sure how much I trust their advice.  I also am unsure of the definition of "single person".  Does that mean you can only trade $999 with a single person, or are you the seller the person?

Does FinCEN even make "laws" that are prosecutable in court or are these just "guidelines".  I don't think I want to piss off FinCEN.

I am using the official Bitcoin-QT client.  I placed my computer in the DMZ to eliminate the need for port forwarding.  I've been downloading the chain for several days and at this rate it will take a month!

Any special bitcoin.conf tweaks?  I am running Windows and do not have a bitcoin.conf by default.

I see that butterfly labs and others sells those USB ASICS that push 5 GH/s.  Is it even worth it to buy these anymore?  It seems as if that would not even make a dent in the network hash power.  Even those big 500 GH/s rigs don't seem worth it (for $22k).  It seems as if all the big boys have monopolized mining to the point where only those who got in very early with a lot of capital have a chance.

[do]

I hope to move this to legal once I have the ability.  I would like to start trading with others through localbitcoins.  If I do will I have to register with FinCEN?  Registration is too capital intensive for me since I hear you need $100k liquid and $1,000 registration fee.  I am going to be very small time and would simply like to help foster local adoption and make a little coin.  I do not want to go to jail or pay $50,000 for a lawyer to save me.  I have read the following:

* You do have to register if you are doing this "regularly"
* You do not have to register if you do it regularly but stay under $999 per day.
* You do not have to register if you keep a single transaction under $10,000.
* You do have to register no matter what.

There is so much contradictory information regarding this.

I found this (http://bitcoin.stackexchange.com/questions/12559/legal-issues-banking-issues-selling-bitcoins-to-people-otc) but I am not sure how much I trust their advice.  I also am unsure of the definition of "single person".  Does that mean you can only trade $999 with a single person, or are you the seller the person?

Does FinCEN even make "laws" that are prosecutable in court or are these just "guidelines".  I don't think I want to piss off FinCEN.