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Author Topic: Do I need to register as Money Transmiter to buy Bitcoins?  (Read 503 times)
subcoin (OP)
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May 17, 2013, 06:40:08 PM
 #1

Here is the situation:
I'm a small business. I am in business of buying Bitcoins.
Please note, I'm not trading or selling them - just buying.
Customer sends me Bitcoins, I send the USD-denominated bank wire.

Questions:
Do I need to register my business as Money Transmitter?
If yes, how do I do this?

Additional info:
Please see FinCEN Guidance on virtual currencies:
http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html
Especially:
Quote
Under FinCEN’s regulations, sending “value that substitutes for currency” to another person or to another location constitutes money transmission
Quote
An administrator or exchanger that (1) accepts and transmits a convertible virtual currency or (2) buys or sells convertible virtual currency for any reason is a money transmitter under FinCEN’s regulations

Side question:
Are there any limitations or exemptions [that will permit me NOT to register as Money Transmitter] to above definitions?
subcoin (OP)
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May 17, 2013, 06:47:30 PM
 #2

The business is in US.
WeedGrassDope
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May 18, 2013, 03:51:53 PM
 #3

You should probably consult a lawyer.
koukanexchange
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May 18, 2013, 05:13:39 PM
 #4

Definitely consult a lawyer that is versed in economics and cryptocurrency..

yurtesen
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May 18, 2013, 05:23:10 PM
 #5

Is this what you are looking for?

Am I an MSB?
http://www.fincen.gov/financial_institutions/msb/amimsb.html

In either case, I would probably call them and ask about this and not trust somebody from forum. I dont know if legal in usa (perhaps after telling the other party that call is recorded?) but it may be wise to record the call just in case if they later change their mind in any way. It is good to be little paranoid sometimes Smiley
The Bitcoin Catalog
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May 18, 2013, 05:24:54 PM
 #6

Check this out to find any legal advice:
http://theclag.org/
http://btclag.org/

The Bitcoin Catalog: Second edition coming out in November! Click here for a  FREE pdf catalog!
Follow us on twitter! @BTCcatalog
btbrae
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May 18, 2013, 05:32:28 PM
 #7

The guidance is vague for a reason - so that they can narrow it down on a later date, but more importantly, on their terms.

The way it usually works is there is a general clause that covers all the bases, and then exceptions to the general clause are defined for interpretation by your lawyer.

Of interest might be this part:
Quote
A user who obtains convertible virtual currency and uses it to purchase real or virtual goods or services is not an MSB under FinCEN's regulations
and
Quote
FinCEN's regulations provide that whether a person is a money transmitter is a matter of facts and circumstances. The regulations identify six circumstances under which a person is not a money transmitter, despite accepting and transmitting currency, funds, or value that substitutes for currency
and under De-centralized currency
Quote
In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency.

My take on this is that it seems that it depends on what you plan to do with the obtained Bitcoins, not the fact that you obtained or bought them in the first place which would determine your status as a money transmitter or not.

I'm not a lawyer.
grabber
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May 18, 2013, 05:51:48 PM
 #8

Here is the situation:
I'm a small business. I am in business of buying Bitcoins.
Please note, I'm not trading or selling them - just buying.
Customer sends me Bitcoins, I send the USD-denominated bank wire.

Questions:
Do I need to register my business as Money Transmitter?
If yes, how do I do this?

Additional info:
Please see FinCEN Guidance on virtual currencies:
http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html
Especially:
Quote
Under FinCEN’s regulations, sending “value that substitutes for currency” to another person or to another location constitutes money transmission
Quote
An administrator or exchanger that (1) accepts and transmits a convertible virtual currency or (2) buys or sells convertible virtual currency for any reason is a money transmitter under FinCEN’s regulations

Side question:
Are there any limitations or exemptions [that will permit me NOT to register as Money Transmitter] to above definitions?


You should consult your accountant first - according to the money movements of your company bank account - if they can manage the paperwork on buying crypto currency - thats not money transmission yet. It's like if you change your money to Euros or Yens - as soon as the goverment accept crypto as a currency - I'd ask my accountant first.
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