The bitpay exemption and application to other services

[adpinbr]

First of all I would like to get some clarification on the Bitpay exemption, but from what I can understand it basically says that so long as you use people that have MSB licenses (such as MtGox and Bank) and you only act as an intermidiary, then you yourself do not require a license.
If such is the case why doesnt Bitinstant claim that they are only an intermidiary between ZipZap and MtGox? They really are only acting as an advertising company since ZipZap and MtGox could provide the exact same service themselves.

How can we us the Bitpay exemption to avoid overregulation?

[BitPay Business Solutions]

Payment Processors are not Money Transmitters.  The IRS has confirmed that time and time again, and so have the states.

http://blog.bitpay.com/2013/03/how-fincen-guidelines-affect-bitpay.html

Payment Processors have their own rules with the IRS and those are what BitPay follows.

[MSantori]

Bitpay's blog gives a good analysis of the exemption.  As to your question - how bitcoiners can use the exemption to avoid regulation  - I think that the answer is pretty straightforward: be a payment processor.  Payment processors stand between merchants and their customers, facilitating the exchange and only the exchange of payment for goods or services.

PS: Bitpay, the IRS has little to do with money transmission regulations.  The IRS is concerned with a separate, but parallel, set of laws in the Internal Revenue Code.  The IRS requires certain reporting under those laws, but not to prevent money laundering like the Bank Secrecy Act.  It's to prevent tax evasion by payors and payees.  Launder away from the IRS' perspective, so long as you pay your taxes.  The IRS provisions are also much less burdensome than the BSA and Patriot Act.