the actual interpretation is that bitcoin foundation moved fiat across state lines into california as a business to pay for the convention centre. so the large (above $1000 in a single transaction) to a Californian bank from a business created a risk flag.

correct. money = FIAT. the US government own dollars. so dollars is their business.. not bitcoin

wrong
if you find gold. you keep it. its yours.. if however you convert it to FIAT, you then have to declare your fiat.

same with bitcoin. america does not own bitcoin, so you do not have to declare bitcoin. but when you convert it to fiat then you have to declare it.

FIAT is the governments property.

imagine it another way.. you own a chicken. it lays an egg.. do you pay tax on every egg produced.. no. if you swapped an egg for some bacon, tax?? no.

if you sold your egg for FIAT, income tax.. yes.

very true and from what i can see only the business "bitinstant" has anything close to all the licences.. so i do hope who ever converted the bitcoins to fiat to pay for the convention hall done so through bitinstant

bitcoins themselves no. not unless a single bitcoin was valued at £6k each (look into assets on HMRC)
EDIT: bitcoins themselves do not have VAT on them, much like swapping  pounds for dollars or euros. however capital gains would need to be paid if bitcoins exceeded £6k per coin.
http://www.hmrc.gov.uk/cgt/possessions/basics.htm#2

and income tax on any profit you make when cashing out your bitcoins back into pound coins

but if your a business selling products and the products are VAT rateable. then price them in bitcoins at the pound rate inc VAT. and when you cash out the bitcoin, pay the VAT to hmrc.

EG
sell a TV
EX VAT =£560
INC VAT =£700

sell for bitcoin at 10BTC (£700 current value)

cash out bitcoins and pay £140 VAT.

agreed. its been used in the bitcoin community for years and also in the bitcoin game dragons tale, so i think it wins purely on account of the name being around the longest.. (grandad rights)

i call people like this Teentrepreneurs (teenage entrepreneurs).

so many great idea's but no experience in the financial industry and only previous experience is handling pocketmoney from mom and dad..

if this guy does not have $25,000 to his name to self fund. i would be on my guard trusting him with my money.

by having a 0.5BTC (£35) limit per customer not registered this should be fine for bank risk. i would however tell bittylicious to have a regular contact with his local bank manager and ensure the bank manager knows that the business is bitcoin based. and not stupidly advertising based like blockchain.info tried to act like.

the only problems that could cause hassle are:

1) doing transactions to a customer above £850 a day or £12k a year
2) a customer (morelikely a paypal chargeback scammer) attempting to pphone the bank to complain about not receiving coins and demanding refund. then the bank investigating bitty. to see it is indeed a bitcoin business, where as bitty. claims it is not.

so again be honest with your bank tell them its a bitcoin business and show them how transparent it is to show proof of delivery (blockchain explorer) + plus logs of communications between bitty and customer.

and everything should be fine

thats because america invaded iran, replaced its government and took over ownership of irans currency.

as i said before america does not control the euro, yen, pound. the only way it can do is by creating a war and taking control. to then make its demands on the population that use it.

now what country does bitcoin belong to that the US military need to bomb? - none
now what government does bitcoin belong to that the US military need to overtake? - none

let hyperthetically say the US government take over bitcoin foundation and ask gavin andressen to make a V9.1 of bitcoin QT which works in favour of the US government by moving 20% of all transactions to a government address.

we as the community simply go back to version 0.8.2 and allow them to play about on the fork V9 creates while we continue unhindered on the 0.8.2 fork

theoretically never..

if bitcoin went upto $1000 a coin at the next reward halving (or sooner) then the built in 'fee' would go from 0.0001 to 0.00001
and the average blocks total fees would go from about 0.2btc to 0.02BTC per block.

to be honest with a block reward of 25BTC and a average fee reward of 0.2btc (under1%) i do not see that fee's are actually a required thing. and at the moment although they are under a penny each people new to bitcoin that have been sold into the whole 'virtually fee free' transactions of the weusecoins video start to see statements in the video being less then honest. (although not a lie due to the 'virtually fee free' it still makes new people sceptical.

more recently becoming "fee's are much lower"....

which in the UK i can send Pound coins to any Euro/british bank for free!.(without delay due to faster payment service)
and so can most other countries. (although delayed by a few days)

then adding on the whole few minutes chat about mining. and new people start using their home desktops for mining, to see it only produces a few pennys a day based on standard gear. they get less sold on the idea of bitcoin..

i suggest a BIG overhaul of the promotional stuff and also removing fee's until there is an under 6.25btc reward limit. where those few extra micro pennies hay help more

you say your info is readily available.. but at request of this readily available information, you decline to pass over such readily available information

copied from his bitcoin island self modded thread before he deleted it

but my point is not about what the value is.. but the fact that authorites are giving bitcoins a value. instead of just saying Seized: syringe (no value)... they named bitcoin and valued it.

another thing to note about it.. out of the millions of dollars linked to drugs in that report.. out of the kilgrams of gold and silver linked to drugs.. only 11BTC is linked to drugs..

(i only got to page 5 and added up over 1.5million dollars of cash was seized..)

so lets hear a news story like this.

in a 3 month period 3 states seized over 1.5million dollars. over 4 years the entire US seized only 11BTC related to drugs, which is more of a drug related currency?

this is true, but having bitcoins flashing in your face 7 times in a 2 minute period EG at the product listing page, as a side advert, at the payment page. does not truely count towards the 7 times.

usually people psychologically log it 3 times.. still pay fiat. but a few days later they return and take more notice of it, and thats the more likely time they would convert. which is still faster then a returning customer making 6 transactions before converting.

so dont expect every customer to take on bitcoin first time. but returning customers will. dont expect a high conversion rate of first time customers. and never expect a 100% conversion no matter how much you plaster bitcoin logo's on your website.

in april the LOWEST price was around $59 which had a high price of over $250 at the start of april and after the date of seizure, the low of $100..

meaning a valuation of between $59-$250 depending on what day the valuation was based on.

try better next time

+1

also to add

value likely $814.22
now authorities are officially showing that bitcoin DOES have value  

lastly to add:
http://blockchain.info/address/1ETDwGUC1QcjYuehFr3u1FD3MvDaUs7SFy

very old news, seems the funds have been released and are moving freely again. so it looks like the police didnt just put them into a public key with unknown private key (effectively destroying them). which shows even when linked to drugs, the user will get them back

showing a unique bitcoin address is actually more secure then a business revealing its bank account details to customers so that they can wire transfer their bill payment each month. after all revealing a bank account makes consumers aware of which bank a business uses.

take bitpay for instance.

unique address given.. funds move to mtgox.. money trail disappears once converted to FIAT.

the block chain does not show the bank account MTGox/Bitpay reimbursed. so what is the problem?

the US government only has control over US dollars.. end of

they do not have control over the euro:
and everyone knows about the number of red light districts, cafe's selling drugs and also how oil tycoons may be thinking of dealing in euros as oppose to dollars. yet the US government cant do anything about that.

they do not have control over the Yen:
and everyone knows that most of their electrical products come from japan and having the ability to control yen would make supplier costs even cheaper.  yet the US government cant do anything about that.

they do not have control over the thai baht:
and everyone knows that most of the counterfeit goods originating from thailand. and to add to this counterfeit goods in Beijing, cambodia at some point passes through thailand. making thailand a fashion threat. yet the US government cant do anything about that.

i can give many examples of other currencies being related to illegal activities.. mexico=drugs, iraq, wars/weapons etc..

the point is when the currency is involved the government cannot do anything about a currency they do not own.

the quote above if you included the whole context is about YOU doing this to THE COMMUNITY. i was emphasising in that post that it was not a personal attack between you and me, but about helping the community.

i dont wish to be involved with you. and i do not attempt to do this to wager a better deal with you either. i do this as you do not have a product to sell, have not shown any proof of your knowledge or experience in undertaking a future project in this area, so it would be like throwing money into a burning fire.

i do not mind that you keep your secret technologies under NDA. but keeping basic due diligence information such as who YOU are is a red flag to anyone in the community.

especially since people in 2012 asked those exact same questions about YOU and you locked the thread. now you wish to only reveal YOUR personal info for a 3BTC fee. and the requirement of an NDA, which requires the payee's to reveal their personal info just to sign a NDA.

that to me sounds ridiculous.

all it will take to quash this accusation is the revealing of your personal information (due dilegence) no one is asking for the business secrets

DO NOT compare bitcoin with liberty dollar.
the issue with liberty dollar was the fact that the metal coins were made to replicate a actual FIAT dollar coin. which comes under counterfeiting laws.

bitcoin is not a counterfeit of FIAT. its a totally unrelated and new currency. (well the thailand authorities could take BTC symbol a bit personal. but its still not as bad as the liberty dollar)

a money transmission business has to involve FIAT. thats the biggest thing to ever think about when bitcoin users are concerned. if you dont touch fiat your not a money transmitter. end off..

although TBF does not as part of their business trade bitcoins for FIAT for any customer. they do/must at some point convert bitcoin to FIAT to pay for things like convention halls...

it is also known that any amount of FIAT wire transferred over $1000 in one go or $15000 slowly over a year would be classed as a business transaction, as oppose to personal transactions (wages).

so TBF needs to clarify when it converted the bitcoin to FIAT to pay for the convention hall.. what was the purpose of the transaction. and the answer would be a purchase of a good or service and not a transmission of funds.

to clarify this they would need to show all the hands that touched the FIAT between TBF and the convention centre. hopefully they used bitinstant bank accounts in the process, as one of the BF's founders is a bitinstant founder. which is fully licenced.

if however gavin found some joebloggs in california and handed them many thousands of BTC in exchange for 10's of thousands of dollars to then use for the convention centre. then TBF has more to explain.