Run 'Round FINCEN Rules. Bitcoin Exchanges without Registering

[readonlyaccess]

If I buy a currency via e-trade, scottrade, or the other with USD i'm not required to have a license.  Why would bitcoin be any different?

I'd be interested to hear arguments against.

[franky1]

I should point out that there are no administrators since the requirement states they be able to both issue and redeem (withdraw from circulation) --- nobody can withdraw a bitcoin from circulation - so we have no administrators.

so the only thing at applies is "as a business" re: exchange of bitcoin to fiat or vice versa.

So miners and users don't need to concern themselves - only exchanges and people who are registered as a business...

99% correct - green is statement on point. red is not so on point.
miners making bitcoin are fine. but mining pools such as 50BTC.com which allows withdrawals in FIAT at the pool. have to be careful.
mining 'workers' dont need to be concerned but pools offering FIAT(direct bank transfer)/convertible virtual currency (dwolla /webmoney online representation of FIAT) Do need to be careful

anything touching FIAT has to be careful. fincen rules are all about dollars and always have been.

the words
Convertible virtual currency - is not bitcoin. so bitcoin remains unaffected just like the last 4 years.

convertible virtual currency = a database on a server(not owned by the banking sector) with a numeric amount that represents a FIAT value.

EG bitstamp dollar is not a legal tender dollar as its only viewable on bitstamp servers. so this is the convertible virtual currency.

bank account dollar is legal tender. so when bitstamp convert their online balance into someones bank account they need to be registerd as a MSB and regulated(licenced) for money transmission because they are moving legal tender aswell as convertible virtual currency.

for a mining pool owner just moving dwolla balances from his dwolla account to his mining workers dwolla accounts. he just needs to be a MSB registered but not money transmission licenced, due to the fact that they are not moving legal tender. only convertible virtual currency (dwolla dollars). so no money transmission licence.(because they dont touch BANK accounts of customers)

the simple rule is. if your moving FIAT around or handling the online digital form of it AS A BUSINESS you need to be MSB registered. if you are then doing specific things like moving it into bank accounts (legal tender) then you need money transmitter licences ontop.

[franky1]

If I buy a currency via e-trade, scottrade, or the other with USD i'm not required to have a license.  Why would bitcoin be any different?

I'd be interested to hear arguments against.

bitcoin is not different. its just that a few numbskulls have mis-read the fincen guidelines and put on their panic hats.

[halfawake]

If I buy a currency via e-trade, scottrade, or the other with USD i'm not required to have a license.  Why would bitcoin be any different?

I'd be interested to hear arguments against.

You aren't, this is true.  But e-trade and scottrade probably have to have license to allow you to do this.

[CompNsci]

I completly ignore FINCEN regulations and I encourage everyone else to do the same.

lol I remember the "Pet Rocks" they were actually a thing when I was a kid and people used to actually buy them.

FINCEN issued guidance. None of his has actually been tested in a court of law yet. Ignoring until there are clearer legal cases and precedents seems a reasonable strategy for an individual, perhaps more risky for a business.

[MagicBit15]

If a person buys or sells bitcoins for dollars, they are supposed to register as a Money Transmitter. This is being applied to the average person even Foundations that do not angage in this, based on the associations of their members.

So, I propose nobody ever buys or sells bitcoins for dollars anymore. I propose we give them away for FREE whenever someone buys or sells a piece of blank paper, valued at approx the same price as bitcoins.

If someone is willing to buy my "pet rock" for $105.00, I'll include a FREE Bitcoin!

It just being used as a broad term it is going to become more of an issue as the years progress, all I have to say is hopefully it will move in a good direction.

Also when the reward halves, just have some funn!!