Also an I Am Not A Lawyer (IANAL) disclaimer.
I was trying to figure if this applies to a hosted (shared) EWallet provider who holds customer's bitcoins and broadcasts bitcoin transactions, but does not convert to fiat or any other type of currency.
Administrators and Exchangers of Virtual Currency
An administrator or exchanger that (1) accepts and transmits a convertible virtual currency [,,,] for any reason is a money transmitter under FinCEN's regulations,
Because the EWallet provider isn't providing exchange to fiat or other currency (or value that substitutes as currency) the service is not a money transmitter.
An administrator or exchanger that [...] (2) buys or sells convertible virtual currency for any reason is a money transmitter under FinCEN's regulations,
a. E-Currencies and E-Precious Metals
Examples include, in part, (1) the transfer of funds between a customer and a third party by permitting a third party to fund a customer's account;
One example of this is an exchange that lets a customer have cash deposited into the exchange's bank account. There's no way to prove the funds were the customer's funds and not some third party that had deposited for credit to the customer's exchange account.
Because of the difficulties exchanges have had in offering that service I've just assumed that was a gray area. But what if these funds are bitcoins and not dollars? Does this mean an
[Edit: exchange] needs to know that the bitcoins received to my wallet account came from me, and were not the result of a transfer I received from someone else?
That's the whole point of an EWallet
. This is unclear to me if this "no third party payments" restriction applies to bitcoin transfers as well.
(2) the transfer of value from a customer's currency or commodity position to the account of another customer;
That's the end of redeemable codes and account-to-account (A2A) transfers (unless, of course, the service providing it is an exchange and money transmitter). But again, is this just for fiat funds, or do BTC transfers apply as well?
or (3) the closing out of a customer's currency or commodity position, with a transfer of proceeds to a third party.
So the cash-out services where the withdrawal goes to whichever bank account you provide would make them a money transmitter. Or the ones that will cash out coins and send a Western Union money transfer or make a cash deposit to my bank account at my bank -- those are money transmitters according to this.